Correlation Between Beowulf Mining and OptiCept Technologies

Can any of the company-specific risk be diversified away by investing in both Beowulf Mining 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 Beowulf Mining and OptiCept Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Beowulf Mining PLC and OptiCept Technologies AB, you can compare the effects of market volatilities on Beowulf Mining 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 Beowulf Mining with a short position of OptiCept Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beowulf Mining and OptiCept Technologies.

Diversification Opportunities for Beowulf Mining and OptiCept Technologies

0.07

Correlation Coefficient

Beowulf Mining  OptiCept Technologies

Significant diversification

The 3 months correlation between Beowulf and OptiCept is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Beowulf Mining PLC and OptiCept Technologies AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OptiCept Technologies and Beowulf Mining 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 Beowulf Mining PLC 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 Beowulf Mining i.e., Beowulf Mining and OptiCept Technologies go up and down completely randomly.

Pair Corralation between Beowulf Mining and OptiCept Technologies

Assuming the 90 days trading horizon Beowulf Mining PLC is expected to generate 1.08 times more return on investment than OptiCept Technologies. However, Beowulf Mining is 1.08 times more volatile than OptiCept Technologies AB. It trades about -0.02 of its potential returns per unit of risk. OptiCept Technologies AB is currently generating about -0.03 per unit of risk. If you would invest  155.00  in Beowulf Mining PLC on April 24, 2025 and sell it today you would lose (10.00) from holding Beowulf Mining PLC or give up 6.45% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Beowulf Mining PLC  vs.  OptiCept Technologies AB

Beowulf Mining PLC

Risk-Adjusted Performance

Very Weak

Over the last 90 days Beowulf Mining PLC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Beowulf Mining is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

OptiCept Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days OptiCept Technologies AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, OptiCept Technologies is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Beowulf Mining and OptiCept Technologies

The main advantage of trading using opposite Beowulf Mining and OptiCept Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beowulf Mining 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.

The idea behind Beowulf Mining PLC and OptiCept Technologies AB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.