Correlation Between OptiCept Technologies and Upsales Technology
Can any of the company-specific risk be diversified away by investing in both OptiCept Technologies and Upsales Technology 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 Upsales Technology 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 Upsales Technology AB, you can compare the effects of market volatilities on OptiCept Technologies and Upsales Technology 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 Upsales Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of OptiCept Technologies and Upsales Technology.
Diversification Opportunities for OptiCept Technologies and Upsales Technology
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between OptiCept and Upsales is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding OptiCept Technologies AB and Upsales Technology AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Upsales Technology 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 Upsales Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Upsales Technology has no effect on the direction of OptiCept Technologies i.e., OptiCept Technologies and Upsales Technology go up and down completely randomly.
Pair Corralation between OptiCept Technologies and Upsales Technology
Assuming the 90 days trading horizon OptiCept Technologies is expected to generate 1.55 times less return on investment than Upsales Technology. But when comparing it to its historical volatility, OptiCept Technologies AB is 1.86 times less risky than Upsales Technology. It trades about 0.12 of its potential returns per unit of risk. Upsales Technology AB is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 3,000 in Upsales Technology AB on September 13, 2024 and sell it today you would earn a total of 180.00 from holding Upsales Technology AB or generate 6.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
OptiCept Technologies AB vs. Upsales Technology AB
Performance |
| Timeline |
| OptiCept Technologies |
| Upsales Technology |
OptiCept Technologies and Upsales Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OptiCept Technologies and Upsales Technology
The main advantage of trading using opposite OptiCept Technologies and Upsales Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OptiCept Technologies position performs unexpectedly, Upsales Technology 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 Upsales Technology will offset losses from the drop in Upsales Technology's long position.| OptiCept Technologies vs. Atlas Copco AB | OptiCept Technologies vs. Atlas Copco AB | OptiCept Technologies vs. Trelleborg AB | OptiCept Technologies vs. Troax Group AB |
| Upsales Technology vs. Lime Technologies AB | Upsales Technology vs. FormPipe Software AB | Upsales Technology vs. Surgical Science Sweden | Upsales Technology vs. Vitec Software Group |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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