Correlation Between HP and Kopin
Can any of the company-specific risk be diversified away by investing in both HP and Kopin at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining HP and Kopin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HP Inc and Kopin, you can compare the effects of market volatilities on HP and Kopin and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in HP with a short position of Kopin. Check out your portfolio center. Please also check ongoing floating volatility patterns of HP and Kopin.
Diversification Opportunities for HP and Kopin
Pay attention - limited upside
The 3 months correlation between HP and Kopin is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding HP Inc and Kopin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kopin and HP is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on HP Inc are associated (or correlated) with Kopin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kopin has no effect on the direction of HP i.e., HP and Kopin go up and down completely randomly.
Pair Corralation between HP and Kopin
Considering the 90-day investment horizon HP Inc is expected to under-perform the Kopin. But the stock apears to be less risky and, when comparing its historical volatility, HP Inc is 6.09 times less risky than Kopin. The stock trades about -0.11 of its potential returns per unit of risk. The Kopin is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 129.00 in Kopin on October 24, 2024 and sell it today you would lose (7.00) from holding Kopin or give up 5.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HP Inc vs. Kopin
Performance |
| Timeline |
| HP Inc |
| Kopin |
HP and Kopin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HP and Kopin
The main advantage of trading using opposite HP and Kopin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HP position performs unexpectedly, Kopin can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Kopin will offset losses from the drop in Kopin's long position.| HP vs. Canon Inc | HP vs. Artificial Intelligence Technology | HP vs. Quantum Computing | HP vs. Ageagle Aerial Systems |
| Kopin vs. Universal Display | Kopin vs. Daktronics | Kopin vs. KULR Technology Group | Kopin vs. LightPath Technologies |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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