Correlation Between OMX Stockholm and Bergman Beving
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By analyzing existing cross correlation between OMX Stockholm Mid and Bergman Beving AB, you can compare the effects of market volatilities on OMX Stockholm and Bergman Beving 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 Bergman Beving. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and Bergman Beving.
Diversification Opportunities for OMX Stockholm and Bergman Beving
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between OMX and Bergman is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and Bergman Beving AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bergman Beving 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 Bergman Beving. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bergman Beving AB has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and Bergman Beving go up and down completely randomly.
Pair Corralation between OMX Stockholm and Bergman Beving
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to under-perform the Bergman Beving. But the index apears to be less risky and, when comparing its historical volatility, OMX Stockholm Mid is 2.27 times less risky than Bergman Beving. The index trades about -0.02 of its potential returns per unit of risk. The Bergman Beving AB is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 27,368 in Bergman Beving AB on September 1, 2024 and sell it today you would lose (818.00) from holding Bergman Beving AB or give up 2.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.23% |
| Values | Daily Returns |
OMX Stockholm Mid vs. Bergman Beving AB
Performance |
| Timeline |
OMX Stockholm and Bergman Beving Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Bergman Beving AB
Pair trading matchups for Bergman Beving
Pair Trading with OMX Stockholm and Bergman Beving
The main advantage of trading using opposite OMX Stockholm and Bergman Beving positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, Bergman Beving 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 Bergman Beving will offset losses from the drop in Bergman Beving'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 |
| Bergman Beving vs. Lagercrantz Group AB | Bergman Beving vs. Addtech AB | Bergman Beving vs. AddLife AB | Bergman Beving vs. Bufab Holding 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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