Correlation Between OMX Helsinki and Sotkamo Silver
Specify exactly 2 symbols:
By analyzing existing cross correlation between OMX Helsinki 25 and Sotkamo Silver AB, you can compare the effects of market volatilities on OMX Helsinki and Sotkamo Silver 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 Sotkamo Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Helsinki and Sotkamo Silver.
Diversification Opportunities for OMX Helsinki and Sotkamo Silver
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between OMX and Sotkamo is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding OMX Helsinki 25 and Sotkamo Silver AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sotkamo Silver AB 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 Sotkamo Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sotkamo Silver AB has no effect on the direction of OMX Helsinki i.e., OMX Helsinki and Sotkamo Silver go up and down completely randomly.
Pair Corralation between OMX Helsinki and Sotkamo Silver
Assuming the 90 days trading horizon OMX Helsinki 25 is expected to under-perform the Sotkamo Silver. But the index apears to be less risky and, when comparing its historical volatility, OMX Helsinki 25 is 5.84 times less risky than Sotkamo Silver. The index trades about -0.02 of its potential returns per unit of risk. The Sotkamo Silver AB is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 4.15 in Sotkamo Silver AB on August 28, 2024 and sell it today you would earn a total of 5.25 from holding Sotkamo Silver AB or generate 126.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
OMX Helsinki 25 vs. Sotkamo Silver AB
Performance |
| Timeline |
OMX Helsinki and Sotkamo Silver Volatility Contrast
Predicted Return Density |
| Returns |
OMX Helsinki 25
Pair trading matchups for OMX Helsinki
Sotkamo Silver AB
Pair trading matchups for Sotkamo Silver
Pair Trading with OMX Helsinki and Sotkamo Silver
The main advantage of trading using opposite OMX Helsinki and Sotkamo Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Helsinki position performs unexpectedly, Sotkamo Silver 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 Sotkamo Silver will offset losses from the drop in Sotkamo Silver's long position.| OMX Helsinki vs. HKFoods Oyj A | OMX Helsinki vs. QPR Software Oyj | OMX Helsinki vs. Sotkamo Silver AB | OMX Helsinki vs. SSH Communications Security |
| Sotkamo Silver vs. Outokumpu Oyj | Sotkamo Silver vs. SSAB AB ser | Sotkamo Silver vs. Telia Company AB | Sotkamo Silver vs. Wartsila Oyj Abp |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |