Correlation Between OMX Stockholm and ALM Equity
Specify exactly 2 symbols:
By analyzing existing cross correlation between OMX Stockholm Mid and ALM Equity AB, you can compare the effects of market volatilities on OMX Stockholm and ALM Equity 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 ALM Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and ALM Equity.
Diversification Opportunities for OMX Stockholm and ALM Equity
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between OMX and ALM is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and ALM Equity AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALM Equity AB 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 ALM Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALM Equity AB has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and ALM Equity go up and down completely randomly.
Pair Corralation between OMX Stockholm and ALM Equity
Assuming the 90 days trading horizon OMX Stockholm is expected to generate 1.24 times less return on investment than ALM Equity. But when comparing it to its historical volatility, OMX Stockholm Mid is 1.29 times less risky than ALM Equity. It trades about 0.05 of its potential returns per unit of risk. ALM Equity AB is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 6,786 in ALM Equity AB on September 1, 2024 and sell it today you would earn a total of 2,034 from holding ALM Equity AB or generate 29.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.6% |
| Values | Daily Returns |
OMX Stockholm Mid vs. ALM Equity AB
Performance |
| Timeline |
OMX Stockholm and ALM Equity Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
ALM Equity AB
Pair trading matchups for ALM Equity
Pair Trading with OMX Stockholm and ALM Equity
The main advantage of trading using opposite OMX Stockholm and ALM Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, ALM Equity 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 ALM Equity will offset losses from the drop in ALM Equity's long position.| OMX Stockholm vs. Beowulf Mining PLC | OMX Stockholm vs. Swedbank AB | OMX Stockholm vs. Arion banki hf | OMX Stockholm vs. TradeDoubler AB |
| ALM Equity vs. Neola Medical AB | ALM Equity vs. Upsales Technology AB | ALM Equity vs. Kinnevik Investment AB | ALM Equity vs. MTI Investment SE |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |