Correlation Between OMX Stockholm and Beowulf Mining
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By analyzing existing cross correlation between OMX Stockholm Mid and Beowulf Mining PLC, you can compare the effects of market volatilities on OMX Stockholm and Beowulf Mining 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 Beowulf Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and Beowulf Mining.
Diversification Opportunities for OMX Stockholm and Beowulf Mining
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between OMX and Beowulf is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and Beowulf Mining PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beowulf Mining PLC 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 Beowulf Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beowulf Mining PLC has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and Beowulf Mining go up and down completely randomly.
Pair Corralation between OMX Stockholm and Beowulf Mining
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to generate 0.18 times more return on investment than Beowulf Mining. However, OMX Stockholm Mid is 5.62 times less risky than Beowulf Mining. It trades about -0.07 of its potential returns per unit of risk. Beowulf Mining PLC is currently generating about -0.24 per unit of risk. If you would invest 165,549 in OMX Stockholm Mid on September 1, 2024 and sell it today you would lose (2,062) from holding OMX Stockholm Mid or give up 1.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
OMX Stockholm Mid vs. Beowulf Mining PLC
Performance |
| Timeline |
OMX Stockholm and Beowulf Mining Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Beowulf Mining PLC
Pair trading matchups for Beowulf Mining
Pair Trading with OMX Stockholm and Beowulf Mining
The main advantage of trading using opposite OMX Stockholm and Beowulf Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, Beowulf Mining 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 Beowulf Mining will offset losses from the drop in Beowulf Mining'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 |
| Beowulf Mining vs. Train Alliance Sweden | Beowulf Mining vs. Swedbank AB | Beowulf Mining vs. Nitro Games Oyj | Beowulf Mining vs. Havsfrun Investment 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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