Correlation Between Kopin and Hon Hai
Can any of the company-specific risk be diversified away by investing in both Kopin and Hon Hai 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 Hon Hai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kopin and Hon Hai Precision, you can compare the effects of market volatilities on Kopin and Hon Hai 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 Hon Hai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kopin and Hon Hai.
Diversification Opportunities for Kopin and Hon Hai
Poor diversification
The 3 months correlation between Kopin and Hon is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Kopin and Hon Hai Precision in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hon Hai Precision 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 Hon Hai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hon Hai Precision has no effect on the direction of Kopin i.e., Kopin and Hon Hai go up and down completely randomly.
Pair Corralation between Kopin and Hon Hai
Given the investment horizon of 90 days Kopin is expected to generate 2.15 times more return on investment than Hon Hai. However, Kopin is 2.15 times more volatile than Hon Hai Precision. It trades about 0.11 of its potential returns per unit of risk. Hon Hai Precision is currently generating about 0.22 per unit of risk. If you would invest 167.00 in Kopin on June 8, 2025 and sell it today you would earn a total of 45.00 from holding Kopin or generate 26.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kopin vs. Hon Hai Precision
Performance |
| Timeline |
| Kopin |
| Hon Hai Precision |
Kopin and Hon Hai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kopin and Hon Hai
The main advantage of trading using opposite Kopin and Hon Hai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kopin position performs unexpectedly, Hon Hai 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 Hon Hai will offset losses from the drop in Hon Hai's long position.| Kopin vs. KULR Technology Group | Kopin vs. Ouster, Common Stock | Kopin vs. LightPath Technologies | Kopin vs. Daktronics |
| Hon Hai vs. AT S Austria | Hon Hai vs. alpha En | Hon Hai vs. Alps Electric Co | Hon Hai vs. BitMine Immersion Technologies, |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| AI Portfolio Prophet Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |