Correlation Between Fortnox AB and Opter AB
Can any of the company-specific risk be diversified away by investing in both Fortnox AB and Opter AB 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 Fortnox AB and Opter AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fortnox AB and Opter AB, you can compare the effects of market volatilities on Fortnox AB and Opter AB 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 Fortnox AB with a short position of Opter AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortnox AB and Opter AB.
Diversification Opportunities for Fortnox AB and Opter AB
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fortnox and Opter is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Fortnox AB and Opter AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Opter AB and Fortnox AB 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 Fortnox AB are associated (or correlated) with Opter AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Opter AB has no effect on the direction of Fortnox AB i.e., Fortnox AB and Opter AB go up and down completely randomly.
Pair Corralation between Fortnox AB and Opter AB
Assuming the 90 days trading horizon Fortnox AB is expected to generate 111.97 times less return on investment than Opter AB. In addition to that, Fortnox AB is 1.16 times more volatile than Opter AB. It trades about 0.0 of its total potential returns per unit of risk. Opter AB is currently generating about 0.2 per unit of volatility. If you would invest 11,050 in Opter AB on August 28, 2024 and sell it today you would earn a total of 1,000.00 from holding Opter AB or generate 9.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Fortnox AB vs. Opter AB
Performance |
| Timeline |
| Fortnox AB |
| Opter AB |
Fortnox AB and Opter AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fortnox AB and Opter AB
The main advantage of trading using opposite Fortnox AB and Opter AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fortnox AB position performs unexpectedly, Opter AB 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 Opter AB will offset losses from the drop in Opter AB's long position.| Fortnox AB vs. Sinch AB | Fortnox AB vs. Hexatronic Group AB | Fortnox AB vs. Samhllsbyggnadsbolaget i Norden | Fortnox AB vs. Storskogen Group AB |
| Opter AB vs. Sinch AB | Opter AB vs. Hexatronic Group AB | Opter AB vs. Samhllsbyggnadsbolaget i Norden | Opter AB vs. Storskogen Group AB |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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