Correlation Between OMX Helsinki and Alandsbanken Abp
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By analyzing existing cross correlation between OMX Helsinki 25 and Alandsbanken Abp A, you can compare the effects of market volatilities on OMX Helsinki and Alandsbanken Abp 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 OMX Helsinki with a short position of Alandsbanken Abp. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Helsinki and Alandsbanken Abp.
Diversification Opportunities for OMX Helsinki and Alandsbanken Abp
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between OMX and Alandsbanken is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding OMX Helsinki 25 and Alandsbanken Abp A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alandsbanken Abp A and OMX Helsinki 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 OMX Helsinki 25 are associated (or correlated) with Alandsbanken Abp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alandsbanken Abp A has no effect on the direction of OMX Helsinki i.e., OMX Helsinki and Alandsbanken Abp go up and down completely randomly.
Pair Corralation between OMX Helsinki and Alandsbanken Abp
Assuming the 90 days trading horizon OMX Helsinki 25 is expected to under-perform the Alandsbanken Abp. But the index apears to be less risky and, when comparing its historical volatility, OMX Helsinki 25 is 1.9 times less risky than Alandsbanken Abp. The index trades about -0.02 of its potential returns per unit of risk. The Alandsbanken Abp A is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 3,447 in Alandsbanken Abp A on August 28, 2024 and sell it today you would lose (47.00) from holding Alandsbanken Abp A or give up 1.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
OMX Helsinki 25 vs. Alandsbanken Abp A
Performance |
| Timeline |
OMX Helsinki and Alandsbanken Abp Volatility Contrast
Predicted Return Density |
| Returns |
OMX Helsinki 25
Pair trading matchups for OMX Helsinki
Alandsbanken Abp A
Pair trading matchups for Alandsbanken Abp
Pair Trading with OMX Helsinki and Alandsbanken Abp
The main advantage of trading using opposite OMX Helsinki and Alandsbanken Abp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Helsinki position performs unexpectedly, Alandsbanken Abp 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 Alandsbanken Abp will offset losses from the drop in Alandsbanken Abp's long position.| OMX Helsinki vs. HKFoods Oyj A | OMX Helsinki vs. Detection Technology OY | OMX Helsinki vs. United Bankers Oyj | OMX Helsinki vs. Nightingale Health Oyj |
| Alandsbanken Abp vs. Sampo Oyj A | Alandsbanken Abp vs. Tokmanni Group Oyj | Alandsbanken Abp vs. Nordea Bank Abp | Alandsbanken Abp vs. TietoEVRY Corp |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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