Correlation Between OMX Stockholm and BHG Group
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By analyzing existing cross correlation between OMX Stockholm Mid and BHG Group AB, you can compare the effects of market volatilities on OMX Stockholm and BHG Group 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 BHG Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and BHG Group.
Diversification Opportunities for OMX Stockholm and BHG Group
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between OMX and BHG is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and BHG Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BHG Group 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 BHG Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BHG Group AB has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and BHG Group go up and down completely randomly.
Pair Corralation between OMX Stockholm and BHG Group
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to under-perform the BHG Group. But the index apears to be less risky and, when comparing its historical volatility, OMX Stockholm Mid is 3.2 times less risky than BHG Group. The index trades about -0.07 of its potential returns per unit of risk. The BHG Group AB is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,785 in BHG Group AB on September 1, 2024 and sell it today you would earn a total of 84.00 from holding BHG Group AB or generate 4.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
OMX Stockholm Mid vs. BHG Group AB
Performance |
| Timeline |
OMX Stockholm and BHG Group Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
BHG Group AB
Pair trading matchups for BHG Group
Pair Trading with OMX Stockholm and BHG Group
The main advantage of trading using opposite OMX Stockholm and BHG Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, BHG Group 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 BHG Group will offset losses from the drop in BHG Group'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 |
| BHG Group vs. Sinch AB | BHG Group vs. Byggmax Group AB | BHG Group vs. Stillfront Group AB | BHG Group vs. Boozt 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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