Correlation Between Koss and Future Fintech

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

By analyzing existing cross correlation between Koss Corporation and Future Fintech Group, you can compare the effects of market volatilities on Koss and Future Fintech 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 Future Fintech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koss and Future Fintech.

Diversification Opportunities for Koss and Future Fintech

0.05

Correlation Coefficient

Koss  Future Fintech

Significant diversification

The 3 months correlation between Koss and Future is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Koss Corp. and Future Fintech Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Future Fintech Group 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 Future Fintech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Future Fintech Group has no effect on the direction of Koss i.e., Koss and Future Fintech go up and down completely randomly.

Pair Corralation between Koss and Future Fintech

Given the investment horizon of 90 days Koss is expected to generate 3.97 times less return on investment than Future Fintech. But when comparing it to its historical volatility, Koss Corporation is 4.94 times less risky than Future Fintech. It trades about 0.14 of its potential returns per unit of risk. Future Fintech Group is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  146.00  in Future Fintech Group on April 24, 2025 and sell it today you would earn a total of  128.00  from holding Future Fintech Group or generate 87.67% 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.  Future Fintech Group

Koss

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Koss Corporation are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Koss unveiled solid returns over the last few months and may actually be approaching a breakup point.

Future Fintech Group

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Future Fintech Group are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak technical and fundamental indicators, Future Fintech unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Koss and Future Fintech

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

The idea behind Koss Corporation and Future Fintech Group 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.

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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.