Correlation Between Neonode and Kopin
Can any of the company-specific risk be diversified away by investing in both Neonode 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 Neonode and Kopin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Neonode and Kopin, you can compare the effects of market volatilities on Neonode 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 Neonode with a short position of Kopin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neonode and Kopin.
Diversification Opportunities for Neonode and Kopin
Poor diversification
The 3 months correlation between Neonode and Kopin is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Neonode and Kopin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kopin and Neonode 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 Neonode 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 Neonode i.e., Neonode and Kopin go up and down completely randomly.
Pair Corralation between Neonode and Kopin
Given the investment horizon of 90 days Neonode is expected to generate 1.23 times more return on investment than Kopin. However, Neonode is 1.23 times more volatile than Kopin. It trades about 0.11 of its potential returns per unit of risk. Kopin is currently generating about 0.04 per unit of risk. If you would invest 150.00 in Neonode on November 5, 2024 and sell it today you would earn a total of 701.00 from holding Neonode or generate 467.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Neonode vs. Kopin
Performance |
| Timeline |
| Neonode |
| Kopin |
Neonode and Kopin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neonode and Kopin
The main advantage of trading using opposite Neonode and Kopin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neonode 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.| Neonode vs. LightPath Technologies | Neonode vs. Methode Electronics | Neonode vs. OSI Systems | Neonode vs. Plexus Corp |
| 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |