Correlation Between Xintela AB and Opter AB
Can any of the company-specific risk be diversified away by investing in both Xintela AB and Opter AB 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 Xintela AB and Opter AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xintela AB and Opter AB, you can compare the effects of market volatilities on Xintela AB and Opter AB 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 Xintela AB with a short position of Opter AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xintela AB and Opter AB.
Diversification Opportunities for Xintela AB and Opter AB
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xintela and Opter is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Xintela AB and Opter AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Opter AB and Xintela AB 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 Xintela AB are associated (or correlated) with Opter AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Opter AB has no effect on the direction of Xintela AB i.e., Xintela AB and Opter AB go up and down completely randomly.
Pair Corralation between Xintela AB and Opter AB
Assuming the 90 days trading horizon Xintela AB is expected to generate 3.12 times more return on investment than Opter AB. However, Xintela AB is 3.12 times more volatile than Opter AB. It trades about 0.06 of its potential returns per unit of risk. Opter AB is currently generating about 0.12 per unit of risk. If you would invest 25.00 in Xintela AB on August 28, 2024 and sell it today you would earn a total of 7.00 from holding Xintela AB or generate 28.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Xintela AB vs. Opter AB
Performance |
| Timeline |
| Xintela AB |
| Opter AB |
Xintela AB and Opter AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xintela AB and Opter AB
The main advantage of trading using opposite Xintela AB and Opter AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xintela AB position performs unexpectedly, Opter AB 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 Opter AB will offset losses from the drop in Opter AB's long position.| Xintela AB vs. Bavarian Nordic | Xintela AB vs. BioPorto | Xintela AB vs. Zaptec AS | Xintela AB vs. cBrain AS |
| Opter AB vs. Sinch AB | Opter AB vs. Hexatronic Group AB | Opter AB vs. Samhllsbyggnadsbolaget i Norden | Opter AB vs. Storskogen Group 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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