Correlation Between Maven Wireless and OptiCept Technologies

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

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

Diversification Opportunities for Maven Wireless and OptiCept Technologies

-0.41

Correlation Coefficient

Maven Wireless  OptiCept Technologies

Very good diversification

The 3 months correlation between Maven and OptiCept is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Maven Wireless Sweden and OptiCept Technologies AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OptiCept Technologies and Maven Wireless 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 Maven Wireless Sweden 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 Maven Wireless i.e., Maven Wireless and OptiCept Technologies go up and down completely randomly.

Pair Corralation between Maven Wireless and OptiCept Technologies

Assuming the 90 days trading horizon Maven Wireless Sweden is expected to generate 1.27 times more return on investment than OptiCept Technologies. However, Maven Wireless is 1.27 times more volatile than OptiCept Technologies AB. It trades about 0.01 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  884.00  in Maven Wireless Sweden on April 24, 2025 and sell it today you would lose (8.00) from holding Maven Wireless Sweden or give up 0.9% of portfolio value over 90 days.

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

Maven Wireless Sweden  vs.  OptiCept Technologies AB

Maven Wireless Sweden

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Maven Wireless Sweden are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Maven Wireless is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private 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 Maven Wireless and OptiCept Technologies

The main advantage of trading using opposite Maven Wireless and OptiCept Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maven Wireless 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 Maven Wireless Sweden 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.