Correlation Between MicroCloud Hologram and Kopin

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

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

Diversification Opportunities for MicroCloud Hologram and Kopin

-0.72

Correlation Coefficient

MicroCloud Hologram  Kopin

Pay attention - limited upside

The 3 months correlation between MicroCloud and Kopin is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding MicroCloud Hologram and Kopin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kopin and MicroCloud Hologram 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 MicroCloud Hologram 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 MicroCloud Hologram i.e., MicroCloud Hologram and Kopin go up and down completely randomly.

Pair Corralation between MicroCloud Hologram and Kopin

Given the investment horizon of 90 days MicroCloud Hologram is expected to under-perform the Kopin. But the stock apears to be less risky and, when comparing its historical volatility, MicroCloud Hologram is 1.38 times less risky than Kopin. The stock trades about -0.68 of its potential returns per unit of risk. The Kopin is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest  83.00  in Kopin on September 16, 2024 and sell it today you would earn a total of  26.00  from holding Kopin or generate 31.33% return on investment over 90 days.

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

MicroCloud Hologram  vs.  Kopin

MicroCloud Hologram

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MicroCloud Hologram has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's essential indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Kopin

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Kopin are ranked lower than 6 (%) 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 MicroCloud Hologram and Kopin

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

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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.