Correlation Between SaveLend Group and OptiCept Technologies
Can any of the company-specific risk be diversified away by investing in both SaveLend Group 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 SaveLend Group and OptiCept Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SaveLend Group AB and OptiCept Technologies AB, you can compare the effects of market volatilities on SaveLend Group 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 SaveLend Group with a short position of OptiCept Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of SaveLend Group and OptiCept Technologies.
Diversification Opportunities for SaveLend Group and OptiCept Technologies
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SaveLend and OptiCept is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding SaveLend Group 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 SaveLend Group 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 SaveLend Group 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 SaveLend Group i.e., SaveLend Group and OptiCept Technologies go up and down completely randomly.
Pair Corralation between SaveLend Group and OptiCept Technologies
Assuming the 90 days trading horizon SaveLend Group AB is expected to under-perform the OptiCept Technologies. But the stock apears to be less risky and, when comparing its historical volatility, SaveLend Group AB is 1.17 times less risky than OptiCept Technologies. The stock trades about -0.18 of its potential returns per unit of risk. The OptiCept Technologies AB is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 489.00 in OptiCept Technologies AB on November 3, 2024 and sell it today you would lose (50.00) from holding OptiCept Technologies AB or give up 10.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SaveLend Group AB vs. OptiCept Technologies AB
Performance |
| Timeline |
| SaveLend Group AB |
| OptiCept Technologies |
SaveLend Group and OptiCept Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SaveLend Group and OptiCept Technologies
The main advantage of trading using opposite SaveLend Group and OptiCept Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SaveLend Group 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.| SaveLend Group vs. Smart Eye AB | SaveLend Group vs. Nepa AB | SaveLend Group vs. MAG Interactive AB | SaveLend Group vs. Hexatronic Group AB |
| OptiCept Technologies vs. Upsales Technology AB | OptiCept Technologies vs. Fractal Gaming Group | OptiCept Technologies vs. Media and Games | OptiCept Technologies vs. Catena Media plc |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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