Correlation Between Train Alliance and OptiCept Technologies
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By analyzing existing cross correlation between Train Alliance Sweden and OptiCept Technologies AB, you can compare the effects of market volatilities on Train Alliance 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 Train Alliance with a short position of OptiCept Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Train Alliance and OptiCept Technologies.
Diversification Opportunities for Train Alliance and OptiCept Technologies
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Train and OptiCept is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Train Alliance Sweden and OptiCept Technologies AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OptiCept Technologies and Train Alliance 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 Train Alliance Sweden 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 Train Alliance i.e., Train Alliance and OptiCept Technologies go up and down completely randomly.
Pair Corralation between Train Alliance and OptiCept Technologies
Assuming the 90 days trading horizon Train Alliance Sweden is expected to under-perform the OptiCept Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Train Alliance Sweden is 1.69 times less risky than OptiCept Technologies. The stock trades about -0.4 of its potential returns per unit of risk. The OptiCept Technologies AB is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 530.00 in OptiCept Technologies AB on September 1, 2024 and sell it today you would lose (25.00) from holding OptiCept Technologies AB or give up 4.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Train Alliance Sweden vs. OptiCept Technologies AB
Performance |
| Timeline |
| Train Alliance Sweden |
| OptiCept Technologies |
Train Alliance and OptiCept Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Train Alliance and OptiCept Technologies
The main advantage of trading using opposite Train Alliance and OptiCept Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Train Alliance 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.| Train Alliance vs. Bergman Beving AB | Train Alliance vs. FM Mattsson Mora | Train Alliance vs. Systemair AB | Train Alliance vs. Garo 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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