Correlation Between OMX Stockholm and Bokusgruppen
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By analyzing existing cross correlation between OMX Stockholm Mid and Bokusgruppen AB, you can compare the effects of market volatilities on OMX Stockholm and Bokusgruppen 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 Bokusgruppen. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and Bokusgruppen.
Diversification Opportunities for OMX Stockholm and Bokusgruppen
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between OMX and Bokusgruppen is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and Bokusgruppen AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bokusgruppen 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 Bokusgruppen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bokusgruppen AB has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and Bokusgruppen go up and down completely randomly.
Pair Corralation between OMX Stockholm and Bokusgruppen
Assuming the 90 days trading horizon OMX Stockholm is expected to generate 3.52 times less return on investment than Bokusgruppen. But when comparing it to its historical volatility, OMX Stockholm Mid is 2.22 times less risky than Bokusgruppen. It trades about 0.25 of its potential returns per unit of risk. Bokusgruppen AB is currently generating about 0.39 of returns per unit of risk over similar time horizon. If you would invest 4,640 in Bokusgruppen AB on November 29, 2024 and sell it today you would earn a total of 640.00 from holding Bokusgruppen AB or generate 13.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OMX Stockholm Mid vs. Bokusgruppen AB
Performance |
| Timeline |
OMX Stockholm and Bokusgruppen Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Bokusgruppen AB
Pair trading matchups for Bokusgruppen
Pair Trading with OMX Stockholm and Bokusgruppen
The main advantage of trading using opposite OMX Stockholm and Bokusgruppen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, Bokusgruppen 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 Bokusgruppen will offset losses from the drop in Bokusgruppen's long position.| OMX Stockholm vs. eEducation Albert AB | OMX Stockholm vs. Lime Technologies AB | OMX Stockholm vs. FormPipe Software AB | OMX Stockholm vs. Media and Games |
| Bokusgruppen vs. Volati AB | Bokusgruppen vs. Bredband2 i Skandinavien | Bokusgruppen vs. Instalco Intressenter AB | Bokusgruppen vs. Clas Ohlson 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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