Correlation Between Media and OMX Stockholm
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By analyzing existing cross correlation between Media and Games and OMX Stockholm Mid, you can compare the effects of market volatilities on 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 Media with a short position of OMX Stockholm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Media and OMX Stockholm.
Diversification Opportunities for Media and OMX Stockholm
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Media and OMX is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Media and Games 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 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 Media and Games 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 Media i.e., Media and OMX Stockholm go up and down completely randomly.
Pair Corralation between Media and OMX Stockholm
Assuming the 90 days trading horizon Media and Games is expected to generate 5.21 times more return on investment than OMX Stockholm. However, Media is 5.21 times more volatile than OMX Stockholm Mid. It trades about 0.12 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 1,776 in Media and Games on October 13, 2024 and sell it today you would earn a total of 1,619 from holding Media and Games or generate 91.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.31% |
| Values | Daily Returns |
Media and Games vs. OMX Stockholm Mid
Performance |
| Timeline |
Media and OMX Stockholm Volatility Contrast
Predicted Return Density |
| Returns |
Media and Games
Pair trading matchups for Media
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Pair Trading with Media and OMX Stockholm
The main advantage of trading using opposite Media and OMX Stockholm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 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.| Media vs. Stillfront Group AB | Media vs. Embracer Group AB | Media vs. G5 Entertainment publ | Media vs. Evolution 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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