Correlation Between OMX Stockholm and Goobit Group
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By analyzing existing cross correlation between OMX Stockholm Mid and Goobit Group AB, you can compare the effects of market volatilities on OMX Stockholm and Goobit 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 Goobit Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and Goobit Group.
Diversification Opportunities for OMX Stockholm and Goobit Group
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between OMX and Goobit is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and Goobit Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goobit 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 Goobit Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goobit Group AB has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and Goobit Group go up and down completely randomly.
Pair Corralation between OMX Stockholm and Goobit Group
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to generate 0.15 times more return on investment than Goobit Group. However, OMX Stockholm Mid is 6.81 times less risky than Goobit Group. It trades about -0.02 of its potential returns per unit of risk. Goobit Group AB is currently generating about -0.04 per unit of risk. If you would invest 168,677 in OMX Stockholm Mid on September 1, 2024 and sell it today you would lose (5,190) from holding OMX Stockholm Mid or give up 3.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.23% |
| Values | Daily Returns |
OMX Stockholm Mid vs. Goobit Group AB
Performance |
| Timeline |
OMX Stockholm and Goobit Group Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Goobit Group AB
Pair trading matchups for Goobit Group
Pair Trading with OMX Stockholm and Goobit Group
The main advantage of trading using opposite OMX Stockholm and Goobit Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, Goobit 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 Goobit Group will offset losses from the drop in Goobit 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 |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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