Correlation Between OMX Stockholm and Catella AB
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By analyzing existing cross correlation between OMX Stockholm Mid and Catella AB A, you can compare the effects of market volatilities on OMX Stockholm and Catella 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 Catella AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and Catella AB.
Diversification Opportunities for OMX Stockholm and Catella AB
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between OMX and Catella is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and Catella AB A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catella AB A 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 Catella AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catella AB A has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and Catella AB go up and down completely randomly.
Pair Corralation between OMX Stockholm and Catella AB
Assuming the 90 days trading horizon OMX Stockholm is expected to generate 5.86 times less return on investment than Catella AB. But when comparing it to its historical volatility, OMX Stockholm Mid is 4.78 times less risky than Catella AB. It trades about 0.07 of its potential returns per unit of risk. Catella AB A is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2,540 in Catella AB A on October 20, 2024 and sell it today you would earn a total of 140.00 from holding Catella AB A or generate 5.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OMX Stockholm Mid vs. Catella AB A
Performance |
| Timeline |
OMX Stockholm and Catella AB Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Catella AB A
Pair trading matchups for Catella AB
Pair Trading with OMX Stockholm and Catella AB
The main advantage of trading using opposite OMX Stockholm and Catella AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, Catella 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 Catella AB will offset losses from the drop in Catella AB's long position.| OMX Stockholm vs. JLT Mobile Computers | OMX Stockholm vs. Invisio Communications AB | OMX Stockholm vs. Flexion Mobile PLC | OMX Stockholm vs. Maven Wireless Sweden |
| Catella AB vs. Byggmstare Anders J | Catella AB vs. KABE Group AB | Catella AB vs. Creades AB | Catella AB vs. NAXS Nordic Access |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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