Correlation Between OptiCept Technologies and Arctic Blue
Can any of the company-specific risk be diversified away by investing in both OptiCept Technologies and Arctic Blue 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 OptiCept Technologies and Arctic Blue into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OptiCept Technologies AB and Arctic Blue Beverages, you can compare the effects of market volatilities on OptiCept Technologies and Arctic Blue 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 OptiCept Technologies with a short position of Arctic Blue. Check out your portfolio center. Please also check ongoing floating volatility patterns of OptiCept Technologies and Arctic Blue.
Diversification Opportunities for OptiCept Technologies and Arctic Blue
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between OptiCept and Arctic is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding OptiCept Technologies AB and Arctic Blue Beverages in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arctic Blue Beverages and OptiCept Technologies 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 OptiCept Technologies AB are associated (or correlated) with Arctic Blue. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arctic Blue Beverages has no effect on the direction of OptiCept Technologies i.e., OptiCept Technologies and Arctic Blue go up and down completely randomly.
Pair Corralation between OptiCept Technologies and Arctic Blue
Assuming the 90 days trading horizon OptiCept Technologies AB is expected to generate 0.62 times more return on investment than Arctic Blue. However, OptiCept Technologies AB is 1.61 times less risky than Arctic Blue. It trades about -0.16 of its potential returns per unit of risk. Arctic Blue Beverages is currently generating about -0.43 per unit of risk. If you would invest 539.00 in OptiCept Technologies AB on August 30, 2024 and sell it today you would lose (39.00) from holding OptiCept Technologies AB or give up 7.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OptiCept Technologies AB vs. Arctic Blue Beverages
Performance |
| Timeline |
| OptiCept Technologies |
| Arctic Blue Beverages |
OptiCept Technologies and Arctic Blue Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OptiCept Technologies and Arctic Blue
The main advantage of trading using opposite OptiCept Technologies and Arctic Blue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OptiCept Technologies position performs unexpectedly, Arctic Blue 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 Arctic Blue will offset losses from the drop in Arctic Blue's long position.| OptiCept Technologies vs. Kinnevik Investment AB | OptiCept Technologies vs. Media and Games | OptiCept Technologies vs. Upsales Technology AB | OptiCept Technologies vs. Neola Medical AB |
| Arctic Blue vs. Cint Group AB | Arctic Blue vs. Nordic Waterproofing Holding | Arctic Blue vs. RVRC Holding AB | Arctic Blue vs. Inwido 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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