Correlation Between Kopin and Wallbox NV

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

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

Diversification Opportunities for Kopin and Wallbox NV

0.13

Correlation Coefficient

Kopin  Wallbox NV

Average diversification

The 3 months correlation between Kopin and Wallbox is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Kopin and Wallbox NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wallbox NV and Kopin 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 Kopin are associated (or correlated) with Wallbox NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wallbox NV has no effect on the direction of Kopin i.e., Kopin and Wallbox NV go up and down completely randomly.

Pair Corralation between Kopin and Wallbox NV

Given the investment horizon of 90 days Kopin is expected to generate 0.96 times more return on investment than Wallbox NV. However, Kopin is 1.04 times less risky than Wallbox NV. It trades about 0.0 of its potential returns per unit of risk. Wallbox NV is currently generating about -0.03 per unit of risk. If you would invest  153.00  in Kopin on December 28, 2024 and sell it today you would lose (22.00) from holding Kopin or give up 14.38% of portfolio value over 90 days.

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

Kopin  vs.  Wallbox NV

Kopin

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kopin has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Kopin is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Wallbox NV

Risk-Adjusted Performance

Very Weak

Over the last 90 days Wallbox NV has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's fundamental drivers remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Kopin and Wallbox NV

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

The idea behind Kopin and Wallbox NV 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.