Correlation Between Catena Media and OMX Stockholm
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By analyzing existing cross correlation between Catena Media plc and OMX Stockholm Mid, you can compare the effects of market volatilities on Catena Media 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 Catena Media with a short position of OMX Stockholm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catena Media and OMX Stockholm.
Diversification Opportunities for Catena Media and OMX Stockholm
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Catena and OMX is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Catena Media plc 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 Catena Media 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 Catena Media plc 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 Catena Media i.e., Catena Media and OMX Stockholm go up and down completely randomly.
Pair Corralation between Catena Media and OMX Stockholm
Assuming the 90 days trading horizon Catena Media plc is expected to under-perform the OMX Stockholm. In addition to that, Catena Media is 8.11 times more volatile than OMX Stockholm Mid. It trades about -0.11 of its total potential returns per unit of risk. OMX Stockholm Mid is currently generating about 0.29 per unit of volatility. If you would invest 165,947 in OMX Stockholm Mid on November 28, 2024 and sell it today you would earn a total of 7,796 from holding OMX Stockholm Mid or generate 4.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Catena Media plc vs. OMX Stockholm Mid
Performance |
| Timeline |
Catena Media and OMX Stockholm Volatility Contrast
Predicted Return Density |
| Returns |
Catena Media plc
Pair trading matchups for Catena Media
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Pair Trading with Catena Media and OMX Stockholm
The main advantage of trading using opposite Catena Media and OMX Stockholm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catena Media 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.| Catena Media vs. Betsson AB | Catena Media vs. Kambi Group PLC | Catena Media vs. Better Collective | Catena Media vs. Evolution AB |
| OMX Stockholm vs. Nordea Bank Abp | OMX Stockholm vs. Media and Games | OMX Stockholm vs. Nitro Games Oyj | OMX Stockholm vs. Vitec Software Group |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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