Correlation Between Koss and Apple

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

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

Diversification Opportunities for Koss and Apple

0.14

Correlation Coefficient

Koss  Apple

Average diversification

The 3 months correlation between Koss and Apple is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Koss Corp. and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and Koss 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 Koss Corporation are associated (or correlated) with Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of Koss i.e., Koss and Apple go up and down completely randomly.

Pair Corralation between Koss and Apple

Given the investment horizon of 90 days Koss is expected to generate 2.4 times less return on investment than Apple. In addition to that, Koss is 2.62 times more volatile than Apple Inc. It trades about 0.02 of its total potential returns per unit of risk. Apple Inc is currently generating about 0.13 per unit of volatility. If you would invest  20,663  in Apple Inc on May 20, 2025 and sell it today you would earn a total of  2,426  from holding Apple Inc or generate 11.74% return on investment over 90 days.

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

Koss Corp.  vs.  Apple Inc

Koss

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Koss Corporation are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Koss is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Apple Inc

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Apple Inc are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite quite unfluctuating basic indicators, Apple may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Koss and Apple

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

The idea behind Koss Corporation and Apple Inc 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.