Correlation Between Opter AB and ChargePanel

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

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

Diversification Opportunities for Opter AB and ChargePanel

0.62

Correlation Coefficient

Opter AB  ChargePanel

Poor diversification

The 3 months correlation between Opter and ChargePanel is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Opter AB and ChargePanel AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ChargePanel AB and Opter AB 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 Opter AB are associated (or correlated) with ChargePanel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ChargePanel AB has no effect on the direction of Opter AB i.e., Opter AB and ChargePanel go up and down completely randomly.

Pair Corralation between Opter AB and ChargePanel

Assuming the 90 days trading horizon Opter AB is expected to generate 16.51 times less return on investment than ChargePanel. But when comparing it to its historical volatility, Opter AB is 3.43 times less risky than ChargePanel. It trades about 0.04 of its potential returns per unit of risk. ChargePanel AB is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest  122.00  in ChargePanel AB on April 23, 2025 and sell it today you would earn a total of  92.00  from holding ChargePanel AB or generate 75.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.36%
Values	Daily Returns

Opter AB  vs.  ChargePanel AB

Opter AB

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Opter AB are ranked lower than 3 (%) 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.

ChargePanel AB

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in ChargePanel AB are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, ChargePanel sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Opter AB and ChargePanel

The main advantage of trading using opposite Opter AB and ChargePanel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Opter AB position performs unexpectedly, ChargePanel 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 ChargePanel will offset losses from the drop in ChargePanel's long position.

The idea behind Opter AB and ChargePanel 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 CEOs Directory module to screen CEOs from public companies around the world.