Correlation Between Alkame Holdings and Koss

Can any of the company-specific risk be diversified away by investing in both Alkame Holdings and Koss 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 Alkame Holdings and Koss into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Alkame Holdings and Koss Corporation, you can compare the effects of market volatilities on Alkame Holdings and Koss 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 Alkame Holdings with a short position of Koss. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alkame Holdings and Koss.

Diversification Opportunities for Alkame Holdings and Koss

0.11

Correlation Coefficient

Alkame Holdings  Koss

Average diversification

The 3 months correlation between Alkame and Koss is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Alkame Holdings and Koss Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koss and Alkame Holdings 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 Alkame Holdings are associated (or correlated) with Koss. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koss has no effect on the direction of Alkame Holdings i.e., Alkame Holdings and Koss go up and down completely randomly.

Pair Corralation between Alkame Holdings and Koss

Given the investment horizon of 90 days Alkame Holdings is expected to generate 49.19 times more return on investment than Koss. However, Alkame Holdings is 49.19 times more volatile than Koss Corporation. It trades about 0.18 of its potential returns per unit of risk. Koss Corporation is currently generating about -0.13 per unit of risk. If you would invest  0.01  in Alkame Holdings on December 5, 2024 and sell it today you would lose (0.01) from holding Alkame Holdings or give up 100.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

Alkame Holdings  vs.  Koss Corp.

Alkame Holdings

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Alkame Holdings are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile forward-looking signals, Alkame Holdings displayed solid returns over the last few months and may actually be approaching a breakup point.

Koss

Risk-Adjusted Performance

Very Weak

Over the last 90 days Koss Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Alkame Holdings and Koss

The main advantage of trading using opposite Alkame Holdings and Koss positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alkame Holdings position performs unexpectedly, Koss 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 Koss will offset losses from the drop in Koss' long position.

The idea behind Alkame Holdings and Koss Corporation pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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..