Correlation Between Havsfrun Investment and OMX Stockholm
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By analyzing existing cross correlation between Havsfrun Investment AB and OMX Stockholm Mid, you can compare the effects of market volatilities on Havsfrun Investment 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 Havsfrun Investment with a short position of OMX Stockholm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Havsfrun Investment and OMX Stockholm.
Diversification Opportunities for Havsfrun Investment and OMX Stockholm
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Havsfrun and OMX is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Havsfrun Investment 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 Havsfrun Investment 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 Havsfrun Investment 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 Havsfrun Investment i.e., Havsfrun Investment and OMX Stockholm go up and down completely randomly.
Pair Corralation between Havsfrun Investment and OMX Stockholm
Assuming the 90 days trading horizon Havsfrun Investment AB is expected to generate 3.44 times more return on investment than OMX Stockholm. However, Havsfrun Investment is 3.44 times more volatile than OMX Stockholm Mid. It trades about 0.02 of its potential returns per unit of risk. OMX Stockholm Mid is currently generating about 0.05 per unit of risk. If you would invest 1,237 in Havsfrun Investment AB on August 29, 2024 and sell it today you would earn a total of 118.00 from holding Havsfrun Investment AB or generate 9.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Havsfrun Investment AB vs. OMX Stockholm Mid
Performance |
| Timeline |
Havsfrun Investment and OMX Stockholm Volatility Contrast
Predicted Return Density |
| Returns |
Havsfrun Investment AB
Pair trading matchups for Havsfrun Investment
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Pair Trading with Havsfrun Investment and OMX Stockholm
The main advantage of trading using opposite Havsfrun Investment and OMX Stockholm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Havsfrun Investment 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.| Havsfrun Investment vs. FormPipe Software AB | Havsfrun Investment vs. Novotek AB | Havsfrun Investment vs. KABE Group AB | Havsfrun Investment vs. IAR Systems Group |
| OMX Stockholm vs. Skandinaviska Enskilda Banken | OMX Stockholm vs. Indutrade AB | OMX Stockholm vs. Arion banki hf | OMX Stockholm vs. Fractal Gaming 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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