Correlation Between Arctic Blue and OMX Stockholm
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By analyzing existing cross correlation between Arctic Blue Beverages and OMX Stockholm Mid, you can compare the effects of market volatilities on Arctic Blue 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 Arctic Blue with a short position of OMX Stockholm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arctic Blue and OMX Stockholm.
Diversification Opportunities for Arctic Blue and OMX Stockholm
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Arctic and OMX is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Arctic Blue Beverages 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 Arctic Blue 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 Arctic Blue Beverages 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 Arctic Blue i.e., Arctic Blue and OMX Stockholm go up and down completely randomly.
Pair Corralation between Arctic Blue and OMX Stockholm
Assuming the 90 days trading horizon Arctic Blue Beverages is expected to under-perform the OMX Stockholm. In addition to that, Arctic Blue is 7.93 times more volatile than OMX Stockholm Mid. It trades about -0.01 of its total potential returns per unit of risk. OMX Stockholm Mid is currently generating about 0.08 per unit of volatility. If you would invest 143,644 in OMX Stockholm Mid on August 27, 2024 and sell it today you would earn a total of 18,071 from holding OMX Stockholm Mid or generate 12.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.47% |
| Values | Daily Returns |
Arctic Blue Beverages vs. OMX Stockholm Mid
Performance |
| Timeline |
Arctic Blue and OMX Stockholm Volatility Contrast
Predicted Return Density |
| Returns |
Arctic Blue Beverages
Pair trading matchups for Arctic Blue
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Pair Trading with Arctic Blue and OMX Stockholm
The main advantage of trading using opposite Arctic Blue and OMX Stockholm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arctic Blue 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.| Arctic Blue vs. Cint Group AB | Arctic Blue vs. Nordic Waterproofing Holding | Arctic Blue vs. Inwido AB | Arctic Blue vs. KABE Group AB |
| OMX Stockholm vs. Arctic Blue Beverages | OMX Stockholm vs. Raketech Group Holding | OMX Stockholm vs. AVTECH Sweden AB | OMX Stockholm vs. Beowulf Mining PLC |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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