Correlation Between Media and OptiCept Technologies
Can any of the company-specific risk be diversified away by investing in both Media 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 Media and OptiCept Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Media and Games and OptiCept Technologies AB, you can compare the effects of market volatilities on Media 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 Media with a short position of OptiCept Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Media and OptiCept Technologies.
Diversification Opportunities for Media and OptiCept Technologies
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Media and OptiCept is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Media and Games and OptiCept Technologies AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OptiCept Technologies and Media 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 Media and Games 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 Media i.e., Media and OptiCept Technologies go up and down completely randomly.
Pair Corralation between Media and OptiCept Technologies
Assuming the 90 days trading horizon Media and Games is expected to generate 1.72 times more return on investment than OptiCept Technologies. However, Media is 1.72 times more volatile than OptiCept Technologies AB. It trades about 0.17 of its potential returns per unit of risk. OptiCept Technologies AB is currently generating about -0.16 per unit of risk. If you would invest 4,170 in Media and Games on August 30, 2024 and sell it today you would earn a total of 525.00 from holding Media and Games or generate 12.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Media and Games vs. OptiCept Technologies AB
Performance |
| Timeline |
| Media and Games |
| OptiCept Technologies |
Media and OptiCept Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Media and OptiCept Technologies
The main advantage of trading using opposite Media and OptiCept Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Media 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.| Media vs. Flexion Mobile PLC | Media vs. Stillfront Group AB | Media vs. iZafe Group AB | Media vs. KABE Group AB |
| OptiCept Technologies vs. Kinnevik Investment AB | OptiCept Technologies vs. Media and Games | OptiCept Technologies vs. Upsales Technology AB | OptiCept Technologies vs. Neola Medical 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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