Correlation Between OptiCept Technologies and Invisio Communications
Can any of the company-specific risk be diversified away by investing in both OptiCept Technologies and Invisio Communications 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 Invisio Communications 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 Invisio Communications AB, you can compare the effects of market volatilities on OptiCept Technologies and Invisio Communications 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 Invisio Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of OptiCept Technologies and Invisio Communications.
Diversification Opportunities for OptiCept Technologies and Invisio Communications
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between OptiCept and Invisio is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding OptiCept Technologies AB and Invisio Communications AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invisio Communications 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 Invisio Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invisio Communications has no effect on the direction of OptiCept Technologies i.e., OptiCept Technologies and Invisio Communications go up and down completely randomly.
Pair Corralation between OptiCept Technologies and Invisio Communications
Assuming the 90 days trading horizon OptiCept Technologies AB is expected to under-perform the Invisio Communications. In addition to that, OptiCept Technologies is 1.51 times more volatile than Invisio Communications AB. It trades about -0.08 of its total potential returns per unit of risk. Invisio Communications AB is currently generating about 0.36 per unit of volatility. If you would invest 33,100 in Invisio Communications AB on November 29, 2024 and sell it today you would earn a total of 5,600 from holding Invisio Communications AB or generate 16.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OptiCept Technologies AB vs. Invisio Communications AB
Performance |
| Timeline |
| OptiCept Technologies |
| Invisio Communications |
OptiCept Technologies and Invisio Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OptiCept Technologies and Invisio Communications
The main advantage of trading using opposite OptiCept Technologies and Invisio Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OptiCept Technologies position performs unexpectedly, Invisio Communications 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 Invisio Communications will offset losses from the drop in Invisio Communications' long position.| OptiCept Technologies vs. Investment AB Oresund | OptiCept Technologies vs. Media and Games | OptiCept Technologies vs. USWE Sports AB | OptiCept Technologies vs. Lundin Mining |
| Invisio Communications vs. Hexatronic Group AB | Invisio Communications vs. CellaVision AB | Invisio Communications vs. Xvivo Perfusion AB | Invisio Communications vs. Sectra 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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