Correlation Between Kopin and Sunny Optical
Can any of the company-specific risk be diversified away by investing in both Kopin and Sunny Optical 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 Sunny Optical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kopin and Sunny Optical Technology, you can compare the effects of market volatilities on Kopin and Sunny Optical 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 Sunny Optical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kopin and Sunny Optical.
Diversification Opportunities for Kopin and Sunny Optical
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kopin and Sunny is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Kopin and Sunny Optical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunny Optical Technology 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 Sunny Optical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunny Optical Technology has no effect on the direction of Kopin i.e., Kopin and Sunny Optical go up and down completely randomly.
Pair Corralation between Kopin and Sunny Optical
Given the investment horizon of 90 days Kopin is expected to under-perform the Sunny Optical. In addition to that, Kopin is 1.47 times more volatile than Sunny Optical Technology. It trades about 0.0 of its total potential returns per unit of risk. Sunny Optical Technology is currently generating about 0.02 per unit of volatility. If you would invest 8,563 in Sunny Optical Technology on September 12, 2024 and sell it today you would lose (208.00) from holding Sunny Optical Technology or give up 2.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kopin vs. Sunny Optical Technology
Performance |
| Timeline |
| Kopin |
| Sunny Optical Technology |
Kopin and Sunny Optical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kopin and Sunny Optical
The main advantage of trading using opposite Kopin and Sunny Optical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kopin position performs unexpectedly, Sunny Optical 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 Sunny Optical will offset losses from the drop in Sunny Optical's long position.| Kopin vs. Universal Display | Kopin vs. Daktronics | Kopin vs. KULR Technology Group | Kopin vs. LightPath Technologies |
| Sunny Optical vs. Ouster Inc | Sunny Optical vs. Kopin | Sunny Optical vs. Vicor | Sunny Optical vs. Fabrinet |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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