Correlation Between TradeDoubler and OptiCept Technologies
Can any of the company-specific risk be diversified away by investing in both TradeDoubler 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 TradeDoubler and OptiCept Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TradeDoubler AB and OptiCept Technologies AB, you can compare the effects of market volatilities on TradeDoubler 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 TradeDoubler with a short position of OptiCept Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of TradeDoubler and OptiCept Technologies.
Diversification Opportunities for TradeDoubler and OptiCept Technologies
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TradeDoubler and OptiCept is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding TradeDoubler AB and OptiCept Technologies AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OptiCept Technologies and TradeDoubler 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 TradeDoubler AB 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 TradeDoubler i.e., TradeDoubler and OptiCept Technologies go up and down completely randomly.
Pair Corralation between TradeDoubler and OptiCept Technologies
Assuming the 90 days trading horizon TradeDoubler AB is expected to generate 1.28 times more return on investment than OptiCept Technologies. However, TradeDoubler is 1.28 times more volatile than OptiCept Technologies AB. It trades about 0.05 of its potential returns per unit of risk. OptiCept Technologies AB is currently generating about -0.1 per unit of risk. If you would invest 342.00 in TradeDoubler AB on September 1, 2024 and sell it today you would earn a total of 8.00 from holding TradeDoubler AB or generate 2.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TradeDoubler AB vs. OptiCept Technologies AB
Performance |
| Timeline |
| TradeDoubler AB |
| OptiCept Technologies |
TradeDoubler and OptiCept Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TradeDoubler and OptiCept Technologies
The main advantage of trading using opposite TradeDoubler and OptiCept Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TradeDoubler 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.| TradeDoubler vs. Precise Biometrics AB | TradeDoubler vs. BE Group AB | TradeDoubler vs. Eniro AB | TradeDoubler vs. Softronic AB |
| OptiCept Technologies vs. AB SKF | OptiCept Technologies vs. Sandvik AB | OptiCept Technologies vs. Husqvarna AB | OptiCept Technologies vs. Skanska 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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