Correlation Between Lohilo Foods and OptiCept Technologies
Can any of the company-specific risk be diversified away by investing in both Lohilo Foods and OptiCept Technologies 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 Lohilo Foods and OptiCept Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lohilo Foods AB and OptiCept Technologies AB, you can compare the effects of market volatilities on Lohilo Foods and OptiCept Technologies 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 Lohilo Foods with a short position of OptiCept Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lohilo Foods and OptiCept Technologies.
Diversification Opportunities for Lohilo Foods and OptiCept Technologies
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Lohilo and OptiCept is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Lohilo Foods AB and OptiCept Technologies AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OptiCept Technologies and Lohilo Foods 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 Lohilo Foods AB are associated (or correlated) with OptiCept Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OptiCept Technologies has no effect on the direction of Lohilo Foods i.e., Lohilo Foods and OptiCept Technologies go up and down completely randomly.
Pair Corralation between Lohilo Foods and OptiCept Technologies
Assuming the 90 days trading horizon Lohilo Foods AB is expected to under-perform the OptiCept Technologies. In addition to that, Lohilo Foods is 2.96 times more volatile than OptiCept Technologies AB. It trades about -0.17 of its total potential returns per unit of risk. OptiCept Technologies AB is currently generating about -0.1 per unit of volatility. If you would invest 530.00 in OptiCept Technologies AB on September 1, 2024 and sell it today you would lose (25.00) from holding OptiCept Technologies AB or give up 4.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lohilo Foods AB vs. OptiCept Technologies AB
Performance |
| Timeline |
| Lohilo Foods AB |
| OptiCept Technologies |
Lohilo Foods and OptiCept Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lohilo Foods and OptiCept Technologies
The main advantage of trading using opposite Lohilo Foods and OptiCept Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lohilo Foods position performs unexpectedly, OptiCept Technologies 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 OptiCept Technologies will offset losses from the drop in OptiCept Technologies' long position.| Lohilo Foods vs. Smart Eye AB | Lohilo Foods vs. Kamux Suomi Oy | Lohilo Foods vs. Harvia Oyj | Lohilo Foods vs. Kambi Group PLC |
| OptiCept Technologies vs. AB SKF | OptiCept Technologies vs. Sandvik AB | OptiCept Technologies vs. Husqvarna AB | OptiCept Technologies vs. Skanska 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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