Correlation Between OptiCept Technologies and Goodbye Kansas
Can any of the company-specific risk be diversified away by investing in both OptiCept Technologies and Goodbye Kansas 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 Goodbye Kansas 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 Goodbye Kansas Group, you can compare the effects of market volatilities on OptiCept Technologies and Goodbye Kansas 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 Goodbye Kansas. Check out your portfolio center. Please also check ongoing floating volatility patterns of OptiCept Technologies and Goodbye Kansas.
Diversification Opportunities for OptiCept Technologies and Goodbye Kansas
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between OptiCept and Goodbye is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding OptiCept Technologies AB and Goodbye Kansas Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goodbye Kansas Group 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 Goodbye Kansas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goodbye Kansas Group has no effect on the direction of OptiCept Technologies i.e., OptiCept Technologies and Goodbye Kansas go up and down completely randomly.
Pair Corralation between OptiCept Technologies and Goodbye Kansas
Assuming the 90 days trading horizon OptiCept Technologies AB is expected to under-perform the Goodbye Kansas. But the stock apears to be less risky and, when comparing its historical volatility, OptiCept Technologies AB is 1.1 times less risky than Goodbye Kansas. The stock trades about -0.17 of its potential returns per unit of risk. The Goodbye Kansas Group is currently generating about 0.54 of returns per unit of risk over similar time horizon. If you would invest 147.00 in Goodbye Kansas Group on October 25, 2024 and sell it today you would earn a total of 67.00 from holding Goodbye Kansas Group or generate 45.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OptiCept Technologies AB vs. Goodbye Kansas Group
Performance |
| Timeline |
| OptiCept Technologies |
| Goodbye Kansas Group |
OptiCept Technologies and Goodbye Kansas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OptiCept Technologies and Goodbye Kansas
The main advantage of trading using opposite OptiCept Technologies and Goodbye Kansas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OptiCept Technologies position performs unexpectedly, Goodbye Kansas 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 Goodbye Kansas will offset losses from the drop in Goodbye Kansas' long position.| OptiCept Technologies vs. AcadeMedia AB | OptiCept Technologies vs. White Pearl Technology | OptiCept Technologies vs. Media and Games | OptiCept Technologies vs. eEducation Albert AB |
| Goodbye Kansas vs. MTI Investment SE | Goodbye Kansas vs. SaveLend Group AB | Goodbye Kansas vs. Filo Mining Corp | Goodbye Kansas vs. Havsfrun Investment 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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