Correlation Between OptiCept Technologies and Investment

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

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

Diversification Opportunities for OptiCept Technologies and Investment

-0.48

Correlation Coefficient

OptiCept Technologies  Investment

Very good diversification

The 3 months correlation between OptiCept and Investment is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding OptiCept Technologies AB and Investment AB Oresund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investment AB Oresund and OptiCept Technologies 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 OptiCept Technologies AB are associated (or correlated) with Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investment AB Oresund has no effect on the direction of OptiCept Technologies i.e., OptiCept Technologies and Investment go up and down completely randomly.

Pair Corralation between OptiCept Technologies and Investment

Assuming the 90 days trading horizon OptiCept Technologies AB is expected to under-perform the Investment. In addition to that, OptiCept Technologies is 2.56 times more volatile than Investment AB Oresund. It trades about -0.03 of its total potential returns per unit of risk. Investment AB Oresund is currently generating about 0.23 per unit of volatility. If you would invest  11,392  in Investment AB Oresund on April 23, 2025 and sell it today you would earn a total of  2,028  from holding Investment AB Oresund or generate 17.8% return on investment over 90 days.

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

OptiCept Technologies AB  vs.  Investment AB Oresund

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 latest weak performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Investment AB Oresund

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Investment AB Oresund are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Investment unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with OptiCept Technologies and Investment

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

The idea behind OptiCept Technologies AB and Investment AB Oresund 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.