Correlation Between OMX Stockholm and AlzeCure Pharma
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By analyzing existing cross correlation between OMX Stockholm Mid and AlzeCure Pharma, you can compare the effects of market volatilities on OMX Stockholm and AlzeCure Pharma 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 AlzeCure Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and AlzeCure Pharma.
Diversification Opportunities for OMX Stockholm and AlzeCure Pharma
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between OMX and AlzeCure is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and AlzeCure Pharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AlzeCure Pharma 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 AlzeCure Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AlzeCure Pharma has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and AlzeCure Pharma go up and down completely randomly.
Pair Corralation between OMX Stockholm and AlzeCure Pharma
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to generate 0.19 times more return on investment than AlzeCure Pharma. However, OMX Stockholm Mid is 5.16 times less risky than AlzeCure Pharma. It trades about 0.04 of its potential returns per unit of risk. AlzeCure Pharma is currently generating about -0.04 per unit of risk. If you would invest 139,282 in OMX Stockholm Mid on September 3, 2024 and sell it today you would earn a total of 24,205 from holding OMX Stockholm Mid or generate 17.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
OMX Stockholm Mid vs. AlzeCure Pharma
Performance |
| Timeline |
OMX Stockholm and AlzeCure Pharma Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
AlzeCure Pharma
Pair trading matchups for AlzeCure Pharma
Pair Trading with OMX Stockholm and AlzeCure Pharma
The main advantage of trading using opposite OMX Stockholm and AlzeCure Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, AlzeCure Pharma 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 AlzeCure Pharma will offset losses from the drop in AlzeCure Pharma's long position.| OMX Stockholm vs. Investment AB Oresund | OMX Stockholm vs. MTI Investment SE | OMX Stockholm vs. Kinnevik Investment AB | OMX Stockholm vs. Axfood AB |
| AlzeCure Pharma vs. Stille AB | AlzeCure Pharma vs. Midsona AB | AlzeCure Pharma vs. Precio Fishbone AB | AlzeCure Pharma vs. C Rad AB |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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