Correlation Between Skandinaviska Enskilda and OptiCept Technologies
Can any of the company-specific risk be diversified away by investing in both Skandinaviska Enskilda 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 Skandinaviska Enskilda and OptiCept Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Skandinaviska Enskilda Banken and OptiCept Technologies AB, you can compare the effects of market volatilities on Skandinaviska Enskilda 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 Skandinaviska Enskilda with a short position of OptiCept Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Skandinaviska Enskilda and OptiCept Technologies.
Diversification Opportunities for Skandinaviska Enskilda and OptiCept Technologies
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Skandinaviska and OptiCept is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Skandinaviska Enskilda Banken and OptiCept Technologies AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OptiCept Technologies and Skandinaviska Enskilda 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 Skandinaviska Enskilda Banken 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 Skandinaviska Enskilda i.e., Skandinaviska Enskilda and OptiCept Technologies go up and down completely randomly.
Pair Corralation between Skandinaviska Enskilda and OptiCept Technologies
Assuming the 90 days trading horizon Skandinaviska Enskilda Banken is expected to generate 0.22 times more return on investment than OptiCept Technologies. However, Skandinaviska Enskilda Banken is 4.59 times less risky than OptiCept Technologies. It trades about 0.05 of its potential returns per unit of risk. OptiCept Technologies AB is currently generating about 0.0 per unit of risk. If you would invest 12,607 in Skandinaviska Enskilda Banken on October 30, 2024 and sell it today you would earn a total of 4,393 from holding Skandinaviska Enskilda Banken or generate 34.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Skandinaviska Enskilda Banken vs. OptiCept Technologies AB
Performance |
| Timeline |
| Skandinaviska Enskilda |
| OptiCept Technologies |
Skandinaviska Enskilda and OptiCept Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Skandinaviska Enskilda and OptiCept Technologies
The main advantage of trading using opposite Skandinaviska Enskilda and OptiCept Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Skandinaviska Enskilda 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.| Skandinaviska Enskilda vs. Viaplay Group AB | Skandinaviska Enskilda vs. Upsales Technology AB | Skandinaviska Enskilda vs. Maven Wireless Sweden | Skandinaviska Enskilda vs. Media and Games |
| OptiCept Technologies vs. Skandinaviska Enskilda Banken | OptiCept Technologies vs. New Nordic Healthbrands | OptiCept Technologies vs. Nordea Bank Abp | OptiCept Technologies vs. eEducation Albert 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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