Correlation Between OMX Stockholm and BioArctic
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By analyzing existing cross correlation between OMX Stockholm Mid and BioArctic AB, you can compare the effects of market volatilities on OMX Stockholm and BioArctic 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 BioArctic. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and BioArctic.
Diversification Opportunities for OMX Stockholm and BioArctic
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between OMX and BioArctic is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and BioArctic AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioArctic 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 BioArctic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioArctic AB has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and BioArctic go up and down completely randomly.
Pair Corralation between OMX Stockholm and BioArctic
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to generate 0.17 times more return on investment than BioArctic. However, OMX Stockholm Mid is 5.78 times less risky than BioArctic. It trades about -0.04 of its potential returns per unit of risk. BioArctic AB is currently generating about -0.01 per unit of risk. If you would invest 169,651 in OMX Stockholm Mid on August 29, 2024 and sell it today you would lose (8,976) from holding OMX Stockholm Mid or give up 5.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
OMX Stockholm Mid vs. BioArctic AB
Performance |
| Timeline |
OMX Stockholm and BioArctic Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
BioArctic AB
Pair trading matchups for BioArctic
Pair Trading with OMX Stockholm and BioArctic
The main advantage of trading using opposite OMX Stockholm and BioArctic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, BioArctic 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 BioArctic will offset losses from the drop in BioArctic's long position.| OMX Stockholm vs. Skandinaviska Enskilda Banken | OMX Stockholm vs. Indutrade AB | OMX Stockholm vs. Arion banki hf | OMX Stockholm vs. Fractal Gaming Group |
| BioArctic vs. Oncopeptides AB | BioArctic vs. Camurus AB | BioArctic vs. Hansa Biopharma AB | BioArctic vs. Cantargia 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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