Correlation Between Smart Eye and Tecsys

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

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

Diversification Opportunities for Smart Eye and Tecsys

0.45

Correlation Coefficient

Smart Eye  Tecsys

Very weak diversification

The 3 months correlation between Smart and Tecsys is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Smart Eye AB and Tecsys Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tecsys Inc and Smart Eye 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 Smart Eye AB are associated (or correlated) with Tecsys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tecsys Inc has no effect on the direction of Smart Eye i.e., Smart Eye and Tecsys go up and down completely randomly.

Pair Corralation between Smart Eye and Tecsys

Assuming the 90 days horizon Smart Eye AB is expected to under-perform the Tecsys. But the pink sheet apears to be less risky and, when comparing its historical volatility, Smart Eye AB is 1.36 times less risky than Tecsys. The pink sheet trades about -0.2 of its potential returns per unit of risk. The Tecsys Inc is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest  2,476  in Tecsys Inc on September 10, 2025 and sell it today you would lose (63.00) from holding Tecsys Inc or give up 2.54% of portfolio value over 90 days.

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

Smart Eye AB  vs.  Tecsys Inc

Smart Eye AB

Risk-Adjusted Performance

Weakest

Over the last 90 days Smart Eye AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's technical and fundamental indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Tecsys Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days Tecsys Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Tecsys is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Smart Eye and Tecsys

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

The idea behind Smart Eye AB and Tecsys Inc 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.