Correlation Between SBF 120 and OMX Helsinki
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By analyzing existing cross correlation between SBF 120 and OMX Helsinki 25, you can compare the effects of market volatilities on SBF 120 and OMX Helsinki 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 SBF 120 with a short position of OMX Helsinki. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBF 120 and OMX Helsinki.
Diversification Opportunities for SBF 120 and OMX Helsinki
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SBF and OMX is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding SBF 120 and OMX Helsinki 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OMX Helsinki 25 and SBF 120 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 SBF 120 are associated (or correlated) with OMX Helsinki. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OMX Helsinki 25 has no effect on the direction of SBF 120 i.e., SBF 120 and OMX Helsinki go up and down completely randomly.
Pair Corralation between SBF 120 and OMX Helsinki
Assuming the 90 days trading horizon SBF 120 is expected to under-perform the OMX Helsinki. But the index apears to be less risky and, when comparing its historical volatility, SBF 120 is 1.03 times less risky than OMX Helsinki. The index trades about -0.2 of its potential returns per unit of risk. The OMX Helsinki 25 is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 446,014 in OMX Helsinki 25 on February 4, 2024 and sell it today you would earn a total of 3,957 from holding OMX Helsinki 25 or generate 0.89% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
SBF 120 vs. OMX Helsinki 25
Performance |
Timeline |
SBF 120 and OMX Helsinki Volatility Contrast
Predicted Return Density |
Returns |
SBF 120
Pair trading matchups for SBF 120
OMX Helsinki 25
Pair trading matchups for OMX Helsinki
Pair Trading with SBF 120 and OMX Helsinki
The main advantage of trading using opposite SBF 120 and OMX Helsinki positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBF 120 position performs unexpectedly, OMX Helsinki 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 OMX Helsinki will offset losses from the drop in OMX Helsinki's long position.SBF 120 vs. Veolia Environnement VE | SBF 120 vs. Netmedia Group SA | SBF 120 vs. Impulse Fitness Solutions | SBF 120 vs. Seche Environnem |
OMX Helsinki vs. QPR Software Oyj | OMX Helsinki vs. Nordea Bank Abp | OMX Helsinki vs. United Bankers Oyj | OMX Helsinki vs. Reka Industrial Oyj |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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