Correlation Between OMX Stockholm and AroCell AB
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By analyzing existing cross correlation between OMX Stockholm Mid and AroCell AB, you can compare the effects of market volatilities on OMX Stockholm and AroCell AB 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 AroCell AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and AroCell AB.
Diversification Opportunities for OMX Stockholm and AroCell AB
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between OMX and AroCell is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and AroCell AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AroCell 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 AroCell AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AroCell AB has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and AroCell AB go up and down completely randomly.
Pair Corralation between OMX Stockholm and AroCell AB
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to generate 0.21 times more return on investment than AroCell AB. However, OMX Stockholm Mid is 4.72 times less risky than AroCell AB. It trades about -0.06 of its potential returns per unit of risk. AroCell AB is currently generating about -0.25 per unit of risk. If you would invest 165,403 in OMX Stockholm Mid on September 3, 2024 and sell it today you would lose (1,916) from holding OMX Stockholm Mid or give up 1.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OMX Stockholm Mid vs. AroCell AB
Performance |
| Timeline |
OMX Stockholm and AroCell AB Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
AroCell AB
Pair trading matchups for AroCell AB
Pair Trading with OMX Stockholm and AroCell AB
The main advantage of trading using opposite OMX Stockholm and AroCell AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, AroCell AB 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 AroCell AB will offset losses from the drop in AroCell AB'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 |
| AroCell AB vs. Smart Eye AB | AroCell AB vs. Genovis AB | AroCell AB vs. Kancera AB | AroCell AB vs. Zignsec 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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