Correlation Between OMX Stockholm and Sweden BuyersClub
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By analyzing existing cross correlation between OMX Stockholm Mid and Sweden BuyersClub AB, you can compare the effects of market volatilities on OMX Stockholm and Sweden BuyersClub 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 Sweden BuyersClub. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and Sweden BuyersClub.
Diversification Opportunities for OMX Stockholm and Sweden BuyersClub
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between OMX and Sweden is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and Sweden BuyersClub AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sweden BuyersClub 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 Sweden BuyersClub. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sweden BuyersClub has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and Sweden BuyersClub go up and down completely randomly.
Pair Corralation between OMX Stockholm and Sweden BuyersClub
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to generate 0.29 times more return on investment than Sweden BuyersClub. However, OMX Stockholm Mid is 3.4 times less risky than Sweden BuyersClub. It trades about 0.29 of its potential returns per unit of risk. Sweden BuyersClub AB is currently generating about -0.03 per unit of risk. If you would invest 165,947 in OMX Stockholm Mid on November 28, 2024 and sell it today you would earn a total of 7,796 from holding OMX Stockholm Mid or generate 4.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.3% |
| Values | Daily Returns |
OMX Stockholm Mid vs. Sweden BuyersClub AB
Performance |
| Timeline |
OMX Stockholm and Sweden BuyersClub Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Sweden BuyersClub AB
Pair trading matchups for Sweden BuyersClub
Pair Trading with OMX Stockholm and Sweden BuyersClub
The main advantage of trading using opposite OMX Stockholm and Sweden BuyersClub positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, Sweden BuyersClub 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 Sweden BuyersClub will offset losses from the drop in Sweden BuyersClub'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 |
| Sweden BuyersClub vs. Lyckegard Group AB | Sweden BuyersClub vs. Gotland Rederi AB | Sweden BuyersClub vs. Brilliant Future 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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