Correlation Between Ocugen and Koss

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

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

Diversification Opportunities for Ocugen and Koss

-0.03

Correlation Coefficient

Ocugen  Koss

Good diversification

The 3 months correlation between Ocugen and Koss is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Ocugen Inc and Koss Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koss and Ocugen 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 Ocugen Inc are associated (or correlated) with Koss. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koss has no effect on the direction of Ocugen i.e., Ocugen and Koss go up and down completely randomly.

Pair Corralation between Ocugen and Koss

Given the investment horizon of 90 days Ocugen Inc is expected to under-perform the Koss. In addition to that, Ocugen is 1.08 times more volatile than Koss Corporation. It trades about -0.01 of its total potential returns per unit of risk. Koss Corporation is currently generating about 0.27 per unit of volatility. If you would invest  247.00  in Koss Corporation on February 10, 2024 and sell it today you would earn a total of  110.00  from holding Koss Corporation or generate 44.53% return on investment over 90 days.

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

Ocugen Inc  vs.  Koss Corp.

Ocugen Inc

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Ocugen Inc are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of very weak technical and fundamental indicators, Ocugen displayed solid returns over the last few months and may actually be approaching a breakup point.

Koss

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Koss Corporation are ranked lower than 8 (%) 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.

Pair Trading with Ocugen and Koss

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

The idea behind Ocugen Inc and Koss Corporation 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.