Correlation Between Meta Materials and Kopin

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

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

Diversification Opportunities for Meta Materials and Kopin

0.0

Correlation Coefficient

Meta Materials  Kopin

Pay attention - limited upside

The 3 months correlation between Meta and Kopin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Meta Materials and Kopin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kopin and Meta Materials 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 Meta Materials 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 Meta Materials i.e., Meta Materials and Kopin go up and down completely randomly.

Pair Corralation between Meta Materials and Kopin

If you would invest  141.00  in Kopin on December 3, 2024 and sell it today you would lose (3.00) from holding Kopin or give up 2.13% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Meta Materials  vs.  Kopin

Meta Materials

Risk-Adjusted Performance

Very Weak

Over the last 90 days Meta Materials has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Meta Materials is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Kopin

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Kopin are ranked lower than 4 (%) 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 Meta Materials and Kopin

The main advantage of trading using opposite Meta Materials and Kopin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meta Materials 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 Meta Materials 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.