Correlation Between OptiCept Technologies and Cinis Fertilizer

Can any of the company-specific risk be diversified away by investing in both OptiCept Technologies and Cinis Fertilizer 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 Cinis Fertilizer 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 Cinis Fertilizer AB, you can compare the effects of market volatilities on OptiCept Technologies and Cinis Fertilizer 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 Cinis Fertilizer. Check out your portfolio center. Please also check ongoing floating volatility patterns of OptiCept Technologies and Cinis Fertilizer.

Diversification Opportunities for OptiCept Technologies and Cinis Fertilizer

0.37

Correlation Coefficient

OptiCept Technologies  Cinis Fertilizer

Weak diversification

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

Pair Corralation between OptiCept Technologies and Cinis Fertilizer

Assuming the 90 days trading horizon OptiCept Technologies AB is expected to under-perform the Cinis Fertilizer. But the stock apears to be less risky and, when comparing its historical volatility, OptiCept Technologies AB is 3.85 times less risky than Cinis Fertilizer. The stock trades about 0.0 of its potential returns per unit of risk. The Cinis Fertilizer AB is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  998.00  in Cinis Fertilizer AB on December 23, 2024 and sell it today you would lose (380.00) from holding Cinis Fertilizer AB or give up 38.08% of portfolio value over 90 days.

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

OptiCept Technologies AB  vs.  Cinis Fertilizer AB

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 comparatively stable basic indicators, OptiCept Technologies is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Cinis Fertilizer

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cinis Fertilizer AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively uncertain basic indicators, Cinis Fertilizer may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with OptiCept Technologies and Cinis Fertilizer

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

The idea behind OptiCept Technologies AB and Cinis Fertilizer 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.