Correlation Between Ocumetics Technology and Nexoptic Technology

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

By analyzing existing cross correlation between Ocumetics Technology Corp and Nexoptic Technology Corp, you can compare the effects of market volatilities on Ocumetics Technology and Nexoptic Technology 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 Ocumetics Technology with a short position of Nexoptic Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ocumetics Technology and Nexoptic Technology.

Diversification Opportunities for Ocumetics Technology and Nexoptic Technology

0.0

Correlation Coefficient

Ocumetics Technology  Nexoptic Technology

Pay attention - limited upside

The 3 months correlation between Ocumetics and Nexoptic is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ocumetics Technology Corp and Nexoptic Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexoptic Technology Corp and Ocumetics Technology 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 Ocumetics Technology Corp are associated (or correlated) with Nexoptic Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexoptic Technology Corp has no effect on the direction of Ocumetics Technology i.e., Ocumetics Technology and Nexoptic Technology go up and down completely randomly.

Pair Corralation between Ocumetics Technology and Nexoptic Technology

Assuming the 90 days horizon Ocumetics Technology Corp is expected to generate 0.42 times more return on investment than Nexoptic Technology. However, Ocumetics Technology Corp is 2.39 times less risky than Nexoptic Technology. It trades about 0.05 of its potential returns per unit of risk. Nexoptic Technology Corp is currently generating about -0.02 per unit of risk. If you would invest  30.00  in Ocumetics Technology Corp on December 1, 2024 and sell it today you would earn a total of  2.00  from holding Ocumetics Technology Corp or generate 6.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Ocumetics Technology Corp  vs.  Nexoptic Technology Corp

Ocumetics Technology Corp

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Ocumetics Technology Corp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Ocumetics Technology showed solid returns over the last few months and may actually be approaching a breakup point.

Nexoptic Technology Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Nexoptic Technology Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Ocumetics Technology and Nexoptic Technology

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

The idea behind Ocumetics Technology Corp and Nexoptic Technology Corp 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.