Correlation Between Jefferies Financial and Kopin
Can any of the company-specific risk be diversified away by investing in both Jefferies Financial 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 Jefferies Financial and Kopin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jefferies Financial Group and Kopin, you can compare the effects of market volatilities on Jefferies Financial 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 Jefferies Financial with a short position of Kopin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jefferies Financial and Kopin.
Diversification Opportunities for Jefferies Financial and Kopin
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jefferies and Kopin is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Jefferies Financial Group and Kopin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kopin and Jefferies Financial 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 Jefferies Financial Group 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 Jefferies Financial i.e., Jefferies Financial and Kopin go up and down completely randomly.
Pair Corralation between Jefferies Financial and Kopin
Considering the 90-day investment horizon Jefferies Financial Group is expected to under-perform the Kopin. But the stock apears to be less risky and, when comparing its historical volatility, Jefferies Financial Group is 3.14 times less risky than Kopin. The stock trades about -0.07 of its potential returns per unit of risk. The Kopin is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 143.00 in Kopin on October 26, 2024 and sell it today you would earn a total of 66.50 from holding Kopin or generate 46.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jefferies Financial Group vs. Kopin
Performance |
| Timeline |
| Jefferies Financial |
| Kopin |
Jefferies Financial and Kopin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jefferies Financial and Kopin
The main advantage of trading using opposite Jefferies Financial and Kopin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jefferies Financial 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.| Jefferies Financial vs. Lazard | Jefferies Financial vs. PJT Partners | Jefferies Financial vs. Moelis Co | Jefferies Financial vs. Houlihan Lokey |
| 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |