Correlation Between OMX Stockholm and EEducation Albert
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By analyzing existing cross correlation between OMX Stockholm Mid and eEducation Albert AB, you can compare the effects of market volatilities on OMX Stockholm and EEducation Albert 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 Stockholm with a short position of EEducation Albert. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and EEducation Albert.
Diversification Opportunities for OMX Stockholm and EEducation Albert
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between OMX and EEducation is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and eEducation Albert AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on eEducation Albert and OMX Stockholm 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 Stockholm Mid are associated (or correlated) with EEducation Albert. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of eEducation Albert has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and EEducation Albert go up and down completely randomly.
Pair Corralation between OMX Stockholm and EEducation Albert
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to generate 0.32 times more return on investment than EEducation Albert. However, OMX Stockholm Mid is 3.11 times less risky than EEducation Albert. It trades about 0.07 of its potential returns per unit of risk. eEducation Albert AB is currently generating about -0.08 per unit of risk. If you would invest 132,662 in OMX Stockholm Mid on August 28, 2024 and sell it today you would earn a total of 29,743 from holding OMX Stockholm Mid or generate 22.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.72% |
| Values | Daily Returns |
OMX Stockholm Mid vs. eEducation Albert AB
Performance |
| Timeline |
OMX Stockholm and EEducation Albert Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
eEducation Albert AB
Pair trading matchups for EEducation Albert
Pair Trading with OMX Stockholm and EEducation Albert
The main advantage of trading using opposite OMX Stockholm and EEducation Albert positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, EEducation Albert 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 EEducation Albert will offset losses from the drop in EEducation Albert's long position.| OMX Stockholm vs. Skandinaviska Enskilda Banken | OMX Stockholm vs. Indutrade AB | OMX Stockholm vs. Arion banki hf | OMX Stockholm vs. Fractal Gaming Group |
| EEducation Albert vs. Greater Than AB | EEducation Albert vs. Cint Group AB | EEducation Albert vs. Acconeer AB | EEducation Albert vs. IAR Systems 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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