Correlation Between Investment and OptiCept Technologies
Can any of the company-specific risk be diversified away by investing in both Investment and OptiCept Technologies 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 Investment and OptiCept Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Investment AB Oresund and OptiCept Technologies AB, you can compare the effects of market volatilities on Investment and OptiCept Technologies 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 Investment with a short position of OptiCept Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investment and OptiCept Technologies.
Diversification Opportunities for Investment and OptiCept Technologies
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Investment and OptiCept is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Investment AB Oresund and OptiCept Technologies AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OptiCept Technologies and Investment 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 Investment AB Oresund are associated (or correlated) with OptiCept Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OptiCept Technologies has no effect on the direction of Investment i.e., Investment and OptiCept Technologies go up and down completely randomly.
Pair Corralation between Investment and OptiCept Technologies
Assuming the 90 days trading horizon Investment AB Oresund is expected to generate 0.4 times more return on investment than OptiCept Technologies. However, Investment AB Oresund is 2.47 times less risky than OptiCept Technologies. It trades about 0.16 of its potential returns per unit of risk. OptiCept Technologies AB is currently generating about -0.08 per unit of risk. If you would invest 11,100 in Investment AB Oresund on November 7, 2024 and sell it today you would earn a total of 580.00 from holding Investment AB Oresund or generate 5.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Investment AB Oresund vs. OptiCept Technologies AB
Performance |
| Timeline |
| Investment AB Oresund |
| OptiCept Technologies |
Investment and OptiCept Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investment and OptiCept Technologies
The main advantage of trading using opposite Investment and OptiCept Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investment position performs unexpectedly, OptiCept Technologies 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 OptiCept Technologies will offset losses from the drop in OptiCept Technologies' long position.| Investment vs. Bure Equity AB | Investment vs. Creades AB | Investment vs. L E Lundbergfretagen | Investment vs. Industrivarden AB ser |
| OptiCept Technologies vs. JonDeTech Sensors | OptiCept Technologies vs. Tingsvalvet Fastighets AB | OptiCept Technologies vs. KABE Group AB | OptiCept Technologies vs. IAR Systems 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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