Correlation Between White Pearl and OptiCept Technologies

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

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

Diversification Opportunities for White Pearl and OptiCept Technologies

-0.74

Correlation Coefficient

White Pearl  OptiCept Technologies

Pay attention - limited upside

The 3 months correlation between White and OptiCept is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding White Pearl Technology and OptiCept Technologies AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OptiCept Technologies and White Pearl 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 White Pearl Technology are associated (or correlated) with OptiCept Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OptiCept Technologies has no effect on the direction of White Pearl i.e., White Pearl and OptiCept Technologies go up and down completely randomly.

Pair Corralation between White Pearl and OptiCept Technologies

Assuming the 90 days trading horizon White Pearl Technology is expected to generate 1.86 times more return on investment than OptiCept Technologies. However, White Pearl is 1.86 times more volatile than OptiCept Technologies AB. It trades about 0.23 of its potential returns per unit of risk. OptiCept Technologies AB is currently generating about -0.03 per unit of risk. If you would invest  630.00  in White Pearl Technology on May 7, 2025 and sell it today you would earn a total of  720.00  from holding White Pearl Technology or generate 114.29% return on investment over 90 days.

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

White Pearl Technology  vs.  OptiCept Technologies AB

White Pearl Technology

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in White Pearl Technology are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, White Pearl sustained solid returns over the last few months and may actually be approaching a breakup point.

OptiCept Technologies

Risk-Adjusted Performance

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 uncertain 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.

Pair Trading with White Pearl and OptiCept Technologies

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

The idea behind White Pearl Technology and OptiCept Technologies 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.

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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .