Correlation Between OMX Stockholm and New Bubbleroom
Specify exactly 2 symbols:
By analyzing existing cross correlation between OMX Stockholm Mid and New Bubbleroom Sweden, you can compare the effects of market volatilities on OMX Stockholm and New Bubbleroom 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 New Bubbleroom. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and New Bubbleroom.
Diversification Opportunities for OMX Stockholm and New Bubbleroom
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between OMX and New is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and New Bubbleroom Sweden in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Bubbleroom Sweden 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 New Bubbleroom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Bubbleroom Sweden has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and New Bubbleroom go up and down completely randomly.
Pair Corralation between OMX Stockholm and New Bubbleroom
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to generate 0.16 times more return on investment than New Bubbleroom. However, OMX Stockholm Mid is 6.45 times less risky than New Bubbleroom. It trades about -0.23 of its potential returns per unit of risk. New Bubbleroom Sweden is currently generating about -0.22 per unit of risk. If you would invest 167,920 in OMX Stockholm Mid on August 27, 2024 and sell it today you would lose (6,205) from holding OMX Stockholm Mid or give up 3.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OMX Stockholm Mid vs. New Bubbleroom Sweden
Performance |
| Timeline |
OMX Stockholm and New Bubbleroom Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
New Bubbleroom Sweden
Pair trading matchups for New Bubbleroom
Pair Trading with OMX Stockholm and New Bubbleroom
The main advantage of trading using opposite OMX Stockholm and New Bubbleroom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, New Bubbleroom 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 New Bubbleroom will offset losses from the drop in New Bubbleroom's long position.| OMX Stockholm vs. Arctic Blue Beverages | OMX Stockholm vs. Raketech Group Holding | OMX Stockholm vs. AVTECH Sweden AB | OMX Stockholm vs. Beowulf Mining PLC |
| New Bubbleroom vs. Cint Group AB | New Bubbleroom vs. Fractal Gaming Group | New Bubbleroom vs. Pierce Group AB | New Bubbleroom vs. Lyko Group A |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |