Correlation Between International Business and Kopin
Can any of the company-specific risk be diversified away by investing in both International Business 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 International Business and Kopin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Business Machines and Kopin, you can compare the effects of market volatilities on International Business 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 International Business with a short position of Kopin. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Business and Kopin.
Diversification Opportunities for International Business and Kopin
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between International and Kopin is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine and Kopin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kopin and International Business 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 International Business Machines 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 International Business i.e., International Business and Kopin go up and down completely randomly.
Pair Corralation between International Business and Kopin
Considering the 90-day investment horizon International Business is expected to generate 4.31 times less return on investment than Kopin. But when comparing it to its historical volatility, International Business Machines is 4.29 times less risky than Kopin. It trades about 0.22 of its potential returns per unit of risk. Kopin is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 83.00 in Kopin on August 28, 2024 and sell it today you would earn a total of 25.00 from holding Kopin or generate 30.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
International Business Machine vs. Kopin
Performance |
| Timeline |
| International Business |
| Kopin |
International Business and Kopin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Business and Kopin
The main advantage of trading using opposite International Business and Kopin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Business 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.| International Business vs. Data Storage Corp | International Business vs. Usio Inc | International Business vs. ARB IOT Group | International Business vs. FiscalNote Holdings |
| 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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