Correlation Between Opter AB and Sinch AB
Can any of the company-specific risk be diversified away by investing in both Opter AB and Sinch 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 Opter AB and Sinch AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Opter AB and Sinch AB, you can compare the effects of market volatilities on Opter AB and Sinch 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 Opter AB with a short position of Sinch AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Opter AB and Sinch AB.
Diversification Opportunities for Opter AB and Sinch AB
Pay attention - limited upside
The 3 months correlation between Opter and Sinch is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Opter AB and Sinch AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinch AB and Opter 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 Opter AB are associated (or correlated) with Sinch AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinch AB has no effect on the direction of Opter AB i.e., Opter AB and Sinch AB go up and down completely randomly.
Pair Corralation between Opter AB and Sinch AB
Assuming the 90 days trading horizon Opter AB is expected to generate 0.52 times more return on investment than Sinch AB. However, Opter AB is 1.91 times less risky than Sinch AB. It trades about 0.07 of its potential returns per unit of risk. Sinch AB is currently generating about 0.01 per unit of risk. If you would invest 7,124 in Opter AB on September 1, 2024 and sell it today you would earn a total of 4,976 from holding Opter AB or generate 69.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Opter AB vs. Sinch AB
Performance |
| Timeline |
| Opter AB |
| Sinch AB |
Opter AB and Sinch AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Opter AB and Sinch AB
The main advantage of trading using opposite Opter AB and Sinch AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Opter AB position performs unexpectedly, Sinch 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 Sinch AB will offset losses from the drop in Sinch AB's long position.| Opter AB vs. Kjell Group AB | Opter AB vs. Upsales Technology AB | Opter AB vs. Avensia publ AB | Opter AB vs. Generic Sweden publ |
| Sinch AB vs. Checkin Group AB | Sinch AB vs. Midsummer AB | Sinch AB vs. Hexatronic Group AB | Sinch AB vs. Cint 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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