Correlation Between Opter AB and Klimator

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

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

Diversification Opportunities for Opter AB and Klimator

0.37

Correlation Coefficient

Opter AB  Klimator

Weak diversification

The 3 months correlation between Opter and Klimator is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Opter AB and Klimator AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Klimator 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 Klimator. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Klimator AB has no effect on the direction of Opter AB i.e., Opter AB and Klimator go up and down completely randomly.

Pair Corralation between Opter AB and Klimator

Assuming the 90 days trading horizon Opter AB is expected to generate 2.4 times less return on investment than Klimator. But when comparing it to its historical volatility, Opter AB is 1.99 times less risky than Klimator. It trades about 0.04 of its potential returns per unit of risk. Klimator AB is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  234.00  in Klimator AB on April 23, 2025 and sell it today you would earn a total of  16.00  from holding Klimator AB or generate 6.84% return on investment over 90 days.

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

Opter AB  vs.  Klimator AB

Opter AB

Risk-Adjusted Performance

Modest

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.

Klimator AB

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Klimator AB are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain forward indicators, Klimator may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Opter AB and Klimator

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

The idea behind Opter AB and Klimator 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.

Check out your portfolio center.

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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.