Correlation Between Addtech AB and OMX Stockholm
Specify exactly 2 symbols:
By analyzing existing cross correlation between Addtech AB and OMX Stockholm Mid, you can compare the effects of market volatilities on Addtech AB and OMX Stockholm 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 Addtech AB with a short position of OMX Stockholm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Addtech AB and OMX Stockholm.
Diversification Opportunities for Addtech AB and OMX Stockholm
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Addtech and OMX is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Addtech AB and OMX Stockholm Mid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OMX Stockholm Mid and Addtech AB 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 Addtech AB are associated (or correlated) with OMX Stockholm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OMX Stockholm Mid has no effect on the direction of Addtech AB i.e., Addtech AB and OMX Stockholm go up and down completely randomly.
Pair Corralation between Addtech AB and OMX Stockholm
Assuming the 90 days trading horizon Addtech AB is expected to generate 2.09 times more return on investment than OMX Stockholm. However, Addtech AB is 2.09 times more volatile than OMX Stockholm Mid. It trades about 0.01 of its potential returns per unit of risk. OMX Stockholm Mid is currently generating about -0.2 per unit of risk. If you would invest 30,120 in Addtech AB on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Addtech AB or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Addtech AB vs. OMX Stockholm Mid
Performance |
| Timeline |
Addtech AB and OMX Stockholm Volatility Contrast
Predicted Return Density |
| Returns |
Addtech AB
Pair trading matchups for Addtech AB
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Pair Trading with Addtech AB and OMX Stockholm
The main advantage of trading using opposite Addtech AB and OMX Stockholm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Addtech AB position performs unexpectedly, OMX Stockholm 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 Stockholm will offset losses from the drop in OMX Stockholm's long position.| Addtech AB vs. Indutrade AB | Addtech AB vs. Lifco AB | Addtech AB vs. Lagercrantz Group AB | Addtech AB vs. AddLife AB |
| OMX Stockholm vs. Investment AB Oresund | OMX Stockholm vs. Nordic Asia Investment | OMX Stockholm vs. Havsfrun Investment AB | OMX Stockholm vs. Raketech Group Holding |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |