Correlation Between Maris Tech and Kopin

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

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

Diversification Opportunities for Maris Tech and Kopin

0.76

Correlation Coefficient

Maris Tech  Kopin

Poor diversification

The 3 months correlation between Maris and Kopin is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Maris Tech and Kopin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kopin and Maris Tech 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 Maris Tech are associated (or correlated) with Kopin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kopin has no effect on the direction of Maris Tech i.e., Maris Tech and Kopin go up and down completely randomly.

Pair Corralation between Maris Tech and Kopin

Given the investment horizon of 90 days Maris Tech is expected to generate 1.59 times less return on investment than Kopin. In addition to that, Maris Tech is 1.13 times more volatile than Kopin. It trades about 0.08 of its total potential returns per unit of risk. Kopin is currently generating about 0.14 per unit of volatility. If you would invest  142.00  in Kopin on May 8, 2025 and sell it today you would earn a total of  58.00  from holding Kopin or generate 40.85% return on investment over 90 days.

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

Maris Tech  vs.  Kopin

Maris Tech

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Maris Tech are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite quite abnormal technical and fundamental indicators, Maris Tech disclosed solid returns over the last few months and may actually be approaching a breakup point.

Kopin

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Kopin are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Kopin displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Maris Tech and Kopin

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

The idea behind Maris Tech and Kopin 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.