Correlation Between Littelfuse and Kopin
Can any of the company-specific risk be diversified away by investing in both Littelfuse 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 Littelfuse and Kopin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Littelfuse and Kopin, you can compare the effects of market volatilities on Littelfuse 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 Littelfuse with a short position of Kopin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Littelfuse and Kopin.
Diversification Opportunities for Littelfuse and Kopin
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Littelfuse and Kopin is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Littelfuse and Kopin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kopin and Littelfuse 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 Littelfuse 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 Littelfuse i.e., Littelfuse and Kopin go up and down completely randomly.
Pair Corralation between Littelfuse and Kopin
Given the investment horizon of 90 days Littelfuse is expected to generate 0.4 times more return on investment than Kopin. However, Littelfuse is 2.53 times less risky than Kopin. It trades about 0.19 of its potential returns per unit of risk. Kopin is currently generating about -0.21 per unit of risk. If you would invest 22,338 in Littelfuse on November 29, 2024 and sell it today you would earn a total of 1,681 from holding Littelfuse or generate 7.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Littelfuse vs. Kopin
Performance |
| Timeline |
| Littelfuse |
| Kopin |
Littelfuse and Kopin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Littelfuse and Kopin
The main advantage of trading using opposite Littelfuse and Kopin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Littelfuse 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.| Littelfuse vs. Plexus Corp | Littelfuse vs. Celestica | Littelfuse vs. Benchmark Electronics | Littelfuse vs. Flex |
| 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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