Correlation Between Bitmine Immersion and Kopin

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

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

Diversification Opportunities for Bitmine Immersion and Kopin

-0.36

Correlation Coefficient

Bitmine Immersion  Kopin

Very good diversification

The 3 months correlation between Bitmine and Kopin is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Bitmine Immersion Technologies and Kopin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kopin and Bitmine Immersion 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 Bitmine Immersion Technologies 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 Bitmine Immersion i.e., Bitmine Immersion and Kopin go up and down completely randomly.

Pair Corralation between Bitmine Immersion and Kopin

Given the investment horizon of 90 days Bitmine Immersion is expected to generate 1.27 times less return on investment than Kopin. In addition to that, Bitmine Immersion is 1.93 times more volatile than Kopin. It trades about 0.03 of its total potential returns per unit of risk. Kopin is currently generating about 0.07 per unit of volatility. If you would invest  117.00  in Kopin on December 2, 2024 and sell it today you would earn a total of  21.00  from holding Kopin or generate 17.95% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Bitmine Immersion Technologies  vs.  Kopin

Bitmine Immersion

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Bitmine Immersion Technologies are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Bitmine Immersion reported solid returns over the last few months and may actually be approaching a breakup point.

Kopin

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Kopin are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady basic indicators, Kopin displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bitmine Immersion and Kopin

The main advantage of trading using opposite Bitmine Immersion and Kopin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitmine Immersion 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.

The idea behind Bitmine Immersion Technologies and Kopin 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.

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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.