Correlation Between Sobr Safe and Cepton
Can any of the company-specific risk be diversified away by investing in both Sobr Safe and Cepton 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 Sobr Safe and Cepton into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sobr Safe and Cepton Inc, you can compare the effects of market volatilities on Sobr Safe and Cepton 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 Sobr Safe with a short position of Cepton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sobr Safe and Cepton.
Diversification Opportunities for Sobr Safe and Cepton
Excellent diversification
The 3 months correlation between Sobr and Cepton is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Sobr Safe and Cepton Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cepton Inc and Sobr Safe 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 Sobr Safe are associated (or correlated) with Cepton. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cepton Inc has no effect on the direction of Sobr Safe i.e., Sobr Safe and Cepton go up and down completely randomly.
Pair Corralation between Sobr Safe and Cepton
Given the investment horizon of 90 days Sobr Safe is expected to under-perform the Cepton. But the stock apears to be less risky and, when comparing its historical volatility, Sobr Safe is 1.3 times less risky than Cepton. The stock trades about -0.03 of its potential returns per unit of risk. The Cepton Inc is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 5.99 in Cepton Inc on August 28, 2024 and sell it today you would lose (4.99) from holding Cepton Inc or give up 83.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 83.9% |
| Values | Daily Returns |
Sobr Safe vs. Cepton Inc
Performance |
| Timeline |
| Sobr Safe |
| Cepton Inc |
Sobr Safe and Cepton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sobr Safe and Cepton
The main advantage of trading using opposite Sobr Safe and Cepton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sobr Safe position performs unexpectedly, Cepton 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 Cepton will offset losses from the drop in Cepton's long position.| Sobr Safe vs. Mind Technology | Sobr Safe vs. SaverOne 2014 Ltd | Sobr Safe vs. Cepton Inc | Sobr Safe vs. SaverOne 2014 Ltd |
| Cepton vs. Cepton Inc | Cepton vs. Thayer Ventures Acquisition | Cepton vs. Anghami Warrants | Cepton vs. Inspirato |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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