Correlation Between Kopin and FIT Hon
Can any of the company-specific risk be diversified away by investing in both Kopin and FIT Hon 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 FIT Hon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kopin and FIT Hon Teng, you can compare the effects of market volatilities on Kopin and FIT Hon 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 FIT Hon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kopin and FIT Hon.
Diversification Opportunities for Kopin and FIT Hon
Good diversification
The 3 months correlation between Kopin and FIT is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Kopin and FIT Hon Teng in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIT Hon Teng 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 FIT Hon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIT Hon Teng has no effect on the direction of Kopin i.e., Kopin and FIT Hon go up and down completely randomly.
Pair Corralation between Kopin and FIT Hon
Given the investment horizon of 90 days Kopin is expected to generate 0.69 times more return on investment than FIT Hon. However, Kopin is 1.45 times less risky than FIT Hon. It trades about 0.21 of its potential returns per unit of risk. FIT Hon Teng is currently generating about 0.08 per unit of risk. If you would invest 77.00 in Kopin on August 24, 2024 and sell it today you would earn a total of 22.00 from holding Kopin or generate 28.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Kopin vs. FIT Hon Teng
Performance |
| Timeline |
| Kopin |
| FIT Hon Teng |
Kopin and FIT Hon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kopin and FIT Hon
The main advantage of trading using opposite Kopin and FIT Hon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kopin position performs unexpectedly, FIT Hon 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 FIT Hon will offset losses from the drop in FIT Hon's long position.| Kopin vs. Universal Display | Kopin vs. Daktronics | Kopin vs. KULR Technology Group | Kopin vs. LightPath Technologies |
| FIT Hon vs. KULR Technology Group | FIT Hon vs. Ouster Inc | FIT Hon vs. MicroCloud Hologram | FIT Hon vs. Kopin |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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