Correlation Between OptiCept Technologies and USWE Sports
Can any of the company-specific risk be diversified away by investing in both OptiCept Technologies and USWE Sports 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 USWE Sports 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 USWE Sports AB, you can compare the effects of market volatilities on OptiCept Technologies and USWE Sports 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 USWE Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of OptiCept Technologies and USWE Sports.
Diversification Opportunities for OptiCept Technologies and USWE Sports
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between OptiCept and USWE is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding OptiCept Technologies AB and USWE Sports AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on USWE Sports AB 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 USWE Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of USWE Sports AB has no effect on the direction of OptiCept Technologies i.e., OptiCept Technologies and USWE Sports go up and down completely randomly.
Pair Corralation between OptiCept Technologies and USWE Sports
Assuming the 90 days trading horizon OptiCept Technologies AB is expected to under-perform the USWE Sports. But the stock apears to be less risky and, when comparing its historical volatility, OptiCept Technologies AB is 1.14 times less risky than USWE Sports. The stock trades about -0.05 of its potential returns per unit of risk. The USWE Sports AB is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 745.00 in USWE Sports AB on April 20, 2025 and sell it today you would earn a total of 605.00 from holding USWE Sports AB or generate 81.21% 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. USWE Sports AB
Performance |
Timeline |
OptiCept Technologies |
USWE Sports AB |
OptiCept Technologies and USWE Sports Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with OptiCept Technologies and USWE Sports
The main advantage of trading using opposite OptiCept Technologies and USWE Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OptiCept Technologies position performs unexpectedly, USWE Sports 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 USWE Sports will offset losses from the drop in USWE Sports' long position.OptiCept Technologies vs. Kinnevik Investment AB | OptiCept Technologies vs. Nordic Asia Investment | OptiCept Technologies vs. Neola Medical AB | OptiCept Technologies vs. Viva Wine Group |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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