Correlation Between OMX Stockholm and Beijer Alma
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By analyzing existing cross correlation between OMX Stockholm Mid and Beijer Alma AB, you can compare the effects of market volatilities on OMX Stockholm and Beijer Alma 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 Beijer Alma. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and Beijer Alma.
Diversification Opportunities for OMX Stockholm and Beijer Alma
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between OMX and Beijer is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and Beijer Alma AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijer Alma 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 Beijer Alma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijer Alma AB has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and Beijer Alma go up and down completely randomly.
Pair Corralation between OMX Stockholm and Beijer Alma
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to generate 0.48 times more return on investment than Beijer Alma. However, OMX Stockholm Mid is 2.1 times less risky than Beijer Alma. It trades about 0.04 of its potential returns per unit of risk. Beijer Alma AB is currently generating about 0.01 per unit of risk. If you would invest 133,776 in OMX Stockholm Mid on August 24, 2024 and sell it today you would earn a total of 25,865 from holding OMX Stockholm Mid or generate 19.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
OMX Stockholm Mid vs. Beijer Alma AB
Performance |
| Timeline |
OMX Stockholm and Beijer Alma Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Beijer Alma AB
Pair trading matchups for Beijer Alma
Pair Trading with OMX Stockholm and Beijer Alma
The main advantage of trading using opposite OMX Stockholm and Beijer Alma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, Beijer Alma 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 Beijer Alma will offset losses from the drop in Beijer Alma's long position.| OMX Stockholm vs. SaltX Technology Holding | OMX Stockholm vs. Addtech AB | OMX Stockholm vs. Upsales Technology AB | OMX Stockholm vs. Bio Works Technologies AB |
| Beijer Alma vs. Beijer Ref AB | Beijer Alma vs. Indutrade AB | Beijer Alma vs. Addtech AB | Beijer Alma vs. Nolato 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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