Correlation Between Lime Technologies and OMX Stockholm
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By analyzing existing cross correlation between Lime Technologies AB and OMX Stockholm Mid, you can compare the effects of market volatilities on Lime Technologies 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 Lime Technologies with a short position of OMX Stockholm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lime Technologies and OMX Stockholm.
Diversification Opportunities for Lime Technologies and OMX Stockholm
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Lime and OMX is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Lime Technologies 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 Lime Technologies 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 Lime Technologies 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 Lime Technologies i.e., Lime Technologies and OMX Stockholm go up and down completely randomly.
Pair Corralation between Lime Technologies and OMX Stockholm
Assuming the 90 days trading horizon Lime Technologies AB is expected to generate 2.63 times more return on investment than OMX Stockholm. However, Lime Technologies is 2.63 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 -0.02 per unit of risk. If you would invest 34,720 in Lime Technologies AB on October 13, 2024 and sell it today you would earn a total of 1,480 from holding Lime Technologies AB or generate 4.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.31% |
| Values | Daily Returns |
Lime Technologies AB vs. OMX Stockholm Mid
Performance |
| Timeline |
Lime Technologies and OMX Stockholm Volatility Contrast
Predicted Return Density |
| Returns |
Lime Technologies AB
Pair trading matchups for Lime Technologies
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Pair Trading with Lime Technologies and OMX Stockholm
The main advantage of trading using opposite Lime Technologies and OMX Stockholm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lime Technologies 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.| Lime Technologies vs. Vitec Software Group | Lime Technologies vs. MIPS AB | Lime Technologies vs. Sinch AB | Lime Technologies vs. Stillfront Group AB |
| OMX Stockholm vs. COOR Service Management | OMX Stockholm vs. Invisio Communications AB | OMX Stockholm vs. Havsfrun Investment AB | 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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