Correlation Between OMX Stockholm and Stock Exchange
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By analyzing existing cross correlation between OMX Stockholm Mid and Stock Exchange Of, you can compare the effects of market volatilities on OMX Stockholm and Stock Exchange 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 OMX Stockholm with a short position of Stock Exchange. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and Stock Exchange.
Diversification Opportunities for OMX Stockholm and Stock Exchange
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between OMX and Stock is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and Stock Exchange Of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stock Exchange and OMX Stockholm 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 OMX Stockholm Mid are associated (or correlated) with Stock Exchange. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stock Exchange has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and Stock Exchange go up and down completely randomly.
Pair Corralation between OMX Stockholm and Stock Exchange
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to generate 1.26 times more return on investment than Stock Exchange. However, OMX Stockholm is 1.26 times more volatile than Stock Exchange Of. It trades about 0.22 of its potential returns per unit of risk. Stock Exchange Of is currently generating about -0.04 per unit of risk. If you would invest 121,681 in OMX Stockholm Mid on February 4, 2024 and sell it today you would earn a total of 32,482 from holding OMX Stockholm Mid or generate 26.69% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 96.8% |
Values | Daily Returns |
OMX Stockholm Mid vs. Stock Exchange Of
Performance |
Timeline |
OMX Stockholm and Stock Exchange Volatility Contrast
Predicted Return Density |
Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Stock Exchange Of
Pair trading matchups for Stock Exchange
Pair Trading with OMX Stockholm and Stock Exchange
The main advantage of trading using opposite OMX Stockholm and Stock Exchange positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, Stock Exchange 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 Stock Exchange will offset losses from the drop in Stock Exchange's long position.OMX Stockholm vs. COOR Service Management | OMX Stockholm vs. Lundin Mining | OMX Stockholm vs. FormPipe Software AB | OMX Stockholm vs. Zenicor Medical Systems |
Stock Exchange vs. Plan B Media | Stock Exchange vs. Wave Entertainment Public | Stock Exchange vs. Planet Communications Asia | Stock Exchange vs. Silicon Craft Technology |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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