Correlation Between VOXX International and Koss

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

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

Diversification Opportunities for VOXX International and Koss

-0.8

Correlation Coefficient

VOXX International  Koss

Pay attention - limited upside

The 3 months correlation between VOXX and Koss is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding VOXX International and Koss Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koss and VOXX International 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 VOXX International 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 VOXX International i.e., VOXX International and Koss go up and down completely randomly.

Pair Corralation between VOXX International and Koss

Given the investment horizon of 90 days VOXX International is expected to generate 0.07 times more return on investment than Koss. However, VOXX International is 13.84 times less risky than Koss. It trades about 0.15 of its potential returns per unit of risk. Koss Corporation is currently generating about -0.13 per unit of risk. If you would invest  729.00  in VOXX International on December 27, 2024 and sell it today you would earn a total of  19.00  from holding VOXX International or generate 2.61% return on investment over 90 days.

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

VOXX International  vs.  Koss Corp.

VOXX International

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in VOXX International are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, VOXX International is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

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 VOXX International and Koss

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

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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.