Correlation Between Kinnevik Investment and OptiCept Technologies

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

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

Diversification Opportunities for Kinnevik Investment and OptiCept Technologies

-0.4

Correlation Coefficient

Kinnevik Investment  OptiCept Technologies

Very good diversification

The 3 months correlation between Kinnevik and OptiCept is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Kinnevik Investment 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 Kinnevik Investment 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 Kinnevik Investment 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 Kinnevik Investment i.e., Kinnevik Investment and OptiCept Technologies go up and down completely randomly.

Pair Corralation between Kinnevik Investment and OptiCept Technologies

Assuming the 90 days trading horizon Kinnevik Investment AB is expected to generate 1.1 times more return on investment than OptiCept Technologies. However, Kinnevik Investment is 1.1 times more volatile than OptiCept Technologies AB. It trades about 0.14 of its potential returns per unit of risk. OptiCept Technologies AB is currently generating about 0.0 per unit of risk. If you would invest  8,270  in Kinnevik Investment AB on April 24, 2025 and sell it today you would earn a total of  2,450  from holding Kinnevik Investment AB or generate 29.63% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.36%
Values	Daily Returns

Kinnevik Investment AB  vs.  OptiCept Technologies AB

Kinnevik Investment

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Kinnevik Investment AB are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Kinnevik Investment sustained solid returns over the last few months and may actually be approaching a breakup point.

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 Kinnevik Investment and OptiCept Technologies

The main advantage of trading using opposite Kinnevik Investment and OptiCept Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinnevik Investment 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 Kinnevik Investment AB 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..