Correlation Between Kopin and Eltek
Can any of the company-specific risk be diversified away by investing in both Kopin and Eltek 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 Kopin and Eltek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kopin and Eltek, you can compare the effects of market volatilities on Kopin and Eltek 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 Kopin with a short position of Eltek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kopin and Eltek.
Diversification Opportunities for Kopin and Eltek
Modest diversification
The 3 months correlation between Kopin and Eltek is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Kopin and Eltek in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eltek and Kopin 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 Kopin are associated (or correlated) with Eltek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eltek has no effect on the direction of Kopin i.e., Kopin and Eltek go up and down completely randomly.
Pair Corralation between Kopin and Eltek
Given the investment horizon of 90 days Kopin is expected to generate 3.2 times more return on investment than Eltek. However, Kopin is 3.2 times more volatile than Eltek. It trades about 0.23 of its potential returns per unit of risk. Eltek is currently generating about 0.09 per unit of risk. 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 Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kopin vs. Eltek
Performance |
| Timeline |
| Kopin |
| Eltek |
Kopin and Eltek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kopin and Eltek
The main advantage of trading using opposite Kopin and Eltek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kopin position performs unexpectedly, Eltek 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 Eltek will offset losses from the drop in Eltek's long position.| 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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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