Correlation Between Koss and Hamilton Beach

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

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Can any of the company-specific risk be diversified away by investing in both Koss and Hamilton Beach at the same time? Although using correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combing Koss and Hamilton Beach into the same portfolio which is an essential part of fundamental portfolio management process.

Diversification Opportunities for Koss and Hamilton Beach

0.66
Correlation
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Poor diversification

The 3 months correlation between Koss and Hamilton is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Koss Corp. and Hamilton Beach Brands Holding in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Hamilton Beach Brands 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 Hamilton Beach. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hamilton Beach Brands has no effect on the direction of Koss i.e. Koss and Hamilton Beach go up and down completely randomly.

Pair Corralation between Koss and Hamilton Beach

Given the investment horizon of 30 days, Koss Corporation is expected to generate 0.73 times more return on investment than Hamilton Beach. However, Koss Corporation is 1.38 times less risky than Hamilton Beach. It trades about 0.08 of its potential returns per unit of risk. Hamilton Beach Brands is currently generating about 0.05 per unit of risk. If you would invest  104.00  in Koss Corporation on May 7, 2020 and sell it today you would earn a total of  21.00  from holding Koss Corporation or generate 20.19% return on investment over 30 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy98.44%
ValuesDaily Returns

Koss Corp.  vs.  Hamilton Beach Brands Holding

 Performance (%) 
      Timeline 
Koss 
55

Koss Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Koss Corporation are ranked lower than 5 (%) of all global equities and portfolios over the last 30 days. In defiance of relatively weak forward-looking signals, Koss reported solid returns over the last few months and may actually be approaching a breakup point.
Hamilton Beach Brands 
33

Hamilton Beach Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Hamilton Beach Brands are ranked lower than 3 (%) of all global equities and portfolios over the last 30 days. Despite somewhat sluggish basic indicators, Hamilton Beach sustained solid returns over the last few months and may actually be approaching a breakup point.

Koss and Hamilton Beach Volatility Contrast

 Predicted Return Density 
      Returns 
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