Correlation Between OMX Stockholm and Bonava AB
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By analyzing existing cross correlation between OMX Stockholm Mid and Bonava AB, you can compare the effects of market volatilities on OMX Stockholm and Bonava AB 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 Bonava AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and Bonava AB.
Diversification Opportunities for OMX Stockholm and Bonava AB
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between OMX and Bonava is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and Bonava AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bonava 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 Bonava AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bonava AB has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and Bonava AB go up and down completely randomly.
Pair Corralation between OMX Stockholm and Bonava AB
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to under-perform the Bonava AB. But the index apears to be less risky and, when comparing its historical volatility, OMX Stockholm Mid is 6.55 times less risky than Bonava AB. The index trades about -0.06 of its potential returns per unit of risk. The Bonava AB is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 858.00 in Bonava AB on September 2, 2024 and sell it today you would earn a total of 22.00 from holding Bonava AB or generate 2.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OMX Stockholm Mid vs. Bonava AB
Performance |
| Timeline |
OMX Stockholm and Bonava AB Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Bonava AB
Pair trading matchups for Bonava AB
Pair Trading with OMX Stockholm and Bonava AB
The main advantage of trading using opposite OMX Stockholm and Bonava AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, Bonava AB 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 Bonava AB will offset losses from the drop in Bonava AB's long position.| OMX Stockholm vs. FormPipe Software AB | OMX Stockholm vs. I Tech | OMX Stockholm vs. G5 Entertainment publ | OMX Stockholm vs. OptiCept Technologies AB |
| Bonava AB vs. Bonava AB | Bonava AB vs. Atrium Ljungberg AB | Bonava AB vs. Attendo AB | Bonava AB vs. NCC 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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