Correlation Between Scandinavian ChemoTech and OMX Stockholm
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By analyzing existing cross correlation between Scandinavian ChemoTech AB and OMX Stockholm Mid, you can compare the effects of market volatilities on Scandinavian ChemoTech 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 Scandinavian ChemoTech with a short position of OMX Stockholm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scandinavian ChemoTech and OMX Stockholm.
Diversification Opportunities for Scandinavian ChemoTech and OMX Stockholm
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Scandinavian and OMX is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Scandinavian ChemoTech 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 Scandinavian ChemoTech 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 Scandinavian ChemoTech 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 Scandinavian ChemoTech i.e., Scandinavian ChemoTech and OMX Stockholm go up and down completely randomly.
Pair Corralation between Scandinavian ChemoTech and OMX Stockholm
Assuming the 90 days trading horizon Scandinavian ChemoTech AB is expected to under-perform the OMX Stockholm. In addition to that, Scandinavian ChemoTech is 6.93 times more volatile than OMX Stockholm Mid. It trades about -0.04 of its total potential returns per unit of risk. OMX Stockholm Mid is currently generating about 0.04 per unit of volatility. If you would invest 142,213 in OMX Stockholm Mid on October 26, 2024 and sell it today you would earn a total of 24,130 from holding OMX Stockholm Mid or generate 16.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Scandinavian ChemoTech AB vs. OMX Stockholm Mid
Performance |
| Timeline |
Scandinavian ChemoTech and OMX Stockholm Volatility Contrast
Predicted Return Density |
| Returns |
Scandinavian ChemoTech AB
Pair trading matchups for Scandinavian ChemoTech
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Pair Trading with Scandinavian ChemoTech and OMX Stockholm
The main advantage of trading using opposite Scandinavian ChemoTech and OMX Stockholm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scandinavian ChemoTech 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.| Scandinavian ChemoTech vs. Vicore Pharma Holding | Scandinavian ChemoTech vs. Enorama Pharma AB | Scandinavian ChemoTech vs. Xintela AB | Scandinavian ChemoTech vs. Alzinova AB |
| OMX Stockholm vs. Nordic Asia Investment | OMX Stockholm vs. Isofol Medical AB | OMX Stockholm vs. Addtech AB | OMX Stockholm vs. Media and Games |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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