Correlation Between OptiCept Technologies and Vitec Software
Can any of the company-specific risk be diversified away by investing in both OptiCept Technologies and Vitec Software 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 Vitec Software 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 Vitec Software Group, you can compare the effects of market volatilities on OptiCept Technologies and Vitec Software 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 Vitec Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of OptiCept Technologies and Vitec Software.
Diversification Opportunities for OptiCept Technologies and Vitec Software
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between OptiCept and Vitec is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding OptiCept Technologies AB and Vitec Software Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vitec Software 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 Vitec Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vitec Software Group has no effect on the direction of OptiCept Technologies i.e., OptiCept Technologies and Vitec Software go up and down completely randomly.
Pair Corralation between OptiCept Technologies and Vitec Software
Assuming the 90 days trading horizon OptiCept Technologies AB is expected to generate 2.17 times more return on investment than Vitec Software. However, OptiCept Technologies is 2.17 times more volatile than Vitec Software Group. It trades about 0.01 of its potential returns per unit of risk. Vitec Software Group is currently generating about -0.03 per unit of risk. If you would invest 560.00 in OptiCept Technologies AB on August 30, 2024 and sell it today you would lose (53.00) from holding OptiCept Technologies AB or give up 9.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OptiCept Technologies AB vs. Vitec Software Group
Performance |
| Timeline |
| OptiCept Technologies |
| Vitec Software Group |
OptiCept Technologies and Vitec Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OptiCept Technologies and Vitec Software
The main advantage of trading using opposite OptiCept Technologies and Vitec Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OptiCept Technologies position performs unexpectedly, Vitec Software 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 Vitec Software will offset losses from the drop in Vitec Software'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 |
| Vitec Software vs. Lifco AB | Vitec Software vs. Lagercrantz Group AB | Vitec Software vs. Addtech AB | Vitec Software vs. Instalco Intressenter 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |