Correlation Between OptiCept Technologies and Skandinaviska Enskilda

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

Diversification Opportunities for OptiCept Technologies and Skandinaviska Enskilda

0.35

Correlation Coefficient

OptiCept Technologies  Skandinaviska Enskilda

Weak diversification

The 3 months correlation between OptiCept and Skandinaviska is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding OptiCept Technologies AB and Skandinaviska Enskilda Banken in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Skandinaviska Enskilda 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 Skandinaviska Enskilda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Skandinaviska Enskilda has no effect on the direction of OptiCept Technologies i.e., OptiCept Technologies and Skandinaviska Enskilda go up and down completely randomly.

Pair Corralation between OptiCept Technologies and Skandinaviska Enskilda

Assuming the 90 days trading horizon OptiCept Technologies AB is expected to under-perform the Skandinaviska Enskilda. In addition to that, OptiCept Technologies is 3.78 times more volatile than Skandinaviska Enskilda Banken. It trades about -0.03 of its total potential returns per unit of risk. Skandinaviska Enskilda Banken is currently generating about -0.08 per unit of volatility. If you would invest  16,440  in Skandinaviska Enskilda Banken on September 2, 2024 and sell it today you would lose (1,100) from holding Skandinaviska Enskilda Banken or give up 6.69% 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.  Skandinaviska Enskilda Banken

OptiCept Technologies

Risk-Adjusted Performance

0 of 100

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.

Skandinaviska Enskilda

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Skandinaviska Enskilda Banken has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Skandinaviska Enskilda is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with OptiCept Technologies and Skandinaviska Enskilda

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

The idea behind OptiCept Technologies AB and Skandinaviska Enskilda Banken 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..