Correlation Between OMX Stockholm and Brilliant Future
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By analyzing existing cross correlation between OMX Stockholm Mid and Brilliant Future AB, you can compare the effects of market volatilities on OMX Stockholm and Brilliant Future 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 Brilliant Future. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and Brilliant Future.
Diversification Opportunities for OMX Stockholm and Brilliant Future
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between OMX and Brilliant is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and Brilliant Future AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brilliant Future 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 Brilliant Future. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brilliant Future has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and Brilliant Future go up and down completely randomly.
Pair Corralation between OMX Stockholm and Brilliant Future
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to generate 0.38 times more return on investment than Brilliant Future. However, OMX Stockholm Mid is 2.64 times less risky than Brilliant Future. It trades about 0.08 of its potential returns per unit of risk. Brilliant Future AB is currently generating about -0.03 per unit of risk. If you would invest 131,536 in OMX Stockholm Mid on November 28, 2024 and sell it today you would earn a total of 42,207 from holding OMX Stockholm Mid or generate 32.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.98% |
| Values | Daily Returns |
OMX Stockholm Mid vs. Brilliant Future AB
Performance |
| Timeline |
OMX Stockholm and Brilliant Future Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Brilliant Future AB
Pair trading matchups for Brilliant Future
Pair Trading with OMX Stockholm and Brilliant Future
The main advantage of trading using opposite OMX Stockholm and Brilliant Future positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, Brilliant Future 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 Brilliant Future will offset losses from the drop in Brilliant Future's long position.| OMX Stockholm vs. Nordea Bank Abp | OMX Stockholm vs. Media and Games | OMX Stockholm vs. Nitro Games Oyj | OMX Stockholm vs. Vitec Software Group |
| Brilliant Future vs. JonDeTech Sensors | Brilliant Future vs. Clean Motion AB | Brilliant Future vs. Goobit Group 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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