Correlation Between Cepton and SaverOne 2014

Can any of the company-specific risk be diversified away by investing in both Cepton and SaverOne 2014 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 Cepton and SaverOne 2014 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cepton Inc and SaverOne 2014 Ltd, you can compare the effects of market volatilities on Cepton and SaverOne 2014 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 Cepton with a short position of SaverOne 2014. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cepton and SaverOne 2014.

Diversification Opportunities for Cepton and SaverOne 2014

-0.44

Correlation Coefficient

Cepton  SaverOne 2014

Very good diversification

The 3 months correlation between Cepton and SaverOne is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Cepton Inc and SaverOne 2014 Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SaverOne 2014 and Cepton 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 Cepton Inc are associated (or correlated) with SaverOne 2014. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SaverOne 2014 has no effect on the direction of Cepton i.e., Cepton and SaverOne 2014 go up and down completely randomly.

Pair Corralation between Cepton and SaverOne 2014

Given the investment horizon of 90 days Cepton is expected to generate 17.38 times less return on investment than SaverOne 2014. But when comparing it to its historical volatility, Cepton Inc is 74.63 times less risky than SaverOne 2014. It trades about 0.13 of its potential returns per unit of risk. SaverOne 2014 Ltd is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  6.50  in SaverOne 2014 Ltd on September 2, 2024 and sell it today you would lose (5.46) from holding SaverOne 2014 Ltd or give up 84.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	65.63%
Values	Daily Returns

Cepton Inc  vs.  SaverOne 2014 Ltd

Cepton Inc

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Cepton Inc are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Cepton is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

SaverOne 2014

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in SaverOne 2014 Ltd are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady technical and fundamental indicators, SaverOne 2014 showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cepton and SaverOne 2014

The main advantage of trading using opposite Cepton and SaverOne 2014 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cepton position performs unexpectedly, SaverOne 2014 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 SaverOne 2014 will offset losses from the drop in SaverOne 2014's long position.

The idea behind Cepton Inc and SaverOne 2014 Ltd 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.