Correlation Between Kopin and Sutimco International

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

By analyzing existing cross correlation between Kopin and Sutimco International, you can compare the effects of market volatilities on Kopin and Sutimco International 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 Sutimco International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kopin and Sutimco International.

Diversification Opportunities for Kopin and Sutimco International

0.0

Correlation Coefficient

Kopin  Sutimco International

Pay attention - limited upside

The 3 months correlation between Kopin and Sutimco is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kopin and Sutimco International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sutimco International 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 Sutimco International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sutimco International has no effect on the direction of Kopin i.e., Kopin and Sutimco International go up and down completely randomly.

Pair Corralation between Kopin and Sutimco International

Given the investment horizon of 90 days Kopin is expected to generate 0.54 times more return on investment than Sutimco International. However, Kopin is 1.87 times less risky than Sutimco International. It trades about 0.12 of its potential returns per unit of risk. Sutimco International is currently generating about -0.13 per unit of risk. If you would invest  85.00  in Kopin on September 5, 2024 and sell it today you would earn a total of  38.00  from holding Kopin or generate 44.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Kopin  vs.  Sutimco International

Kopin

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Kopin are ranked lower than 9 (%) 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.

Sutimco International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sutimco International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Kopin and Sutimco International

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

The idea behind Kopin and Sutimco International 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.