Correlation Between Kjell Group and Opter AB

Can any of the company-specific risk be diversified away by investing in both Kjell Group 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 Kjell Group and Opter AB into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Kjell Group and Opter AB

0.31

Correlation Coefficient

Kjell Group  Opter AB

Weak diversification

The 3 months correlation between Kjell and Opter is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Kjell Group AB and Opter AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Opter AB and Kjell 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 Kjell Group 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 Kjell Group i.e., Kjell Group and Opter AB go up and down completely randomly.

Pair Corralation between Kjell Group and Opter AB

Assuming the 90 days trading horizon Kjell Group AB is expected to generate 4.04 times more return on investment than Opter AB. However, Kjell Group is 4.04 times more volatile than Opter AB. It trades about 0.02 of its potential returns per unit of risk. Opter AB is currently generating about 0.05 per unit of risk. If you would invest  1,000.00  in Kjell Group AB on April 23, 2025 and sell it today you would lose (16.00) from holding Kjell Group AB or give up 1.6% of portfolio value over 90 days.

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

Kjell Group AB  vs.  Opter AB

Kjell Group AB

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Kjell Group AB are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Kjell Group may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Opter AB

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Opter AB are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Opter AB 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 Kjell Group and Opter AB

The main advantage of trading using opposite Kjell Group and Opter AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kjell Group 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.

The idea behind Kjell Group AB and Opter 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.