Correlation Between OMX Stockholm and Crunchfish
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By analyzing existing cross correlation between OMX Stockholm Mid and Crunchfish AB, you can compare the effects of market volatilities on OMX Stockholm and Crunchfish 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 Crunchfish. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and Crunchfish.
Diversification Opportunities for OMX Stockholm and Crunchfish
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between OMX and Crunchfish is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and Crunchfish AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crunchfish 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 Crunchfish. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crunchfish AB has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and Crunchfish go up and down completely randomly.
Pair Corralation between OMX Stockholm and Crunchfish
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to generate 0.16 times more return on investment than Crunchfish. However, OMX Stockholm Mid is 6.22 times less risky than Crunchfish. It trades about -0.19 of its potential returns per unit of risk. Crunchfish AB is currently generating about -0.24 per unit of risk. If you would invest 167,920 in OMX Stockholm Mid on August 29, 2024 and sell it today you would lose (5,923) from holding OMX Stockholm Mid or give up 3.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OMX Stockholm Mid vs. Crunchfish AB
Performance |
| Timeline |
OMX Stockholm and Crunchfish Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Crunchfish AB
Pair trading matchups for Crunchfish
Pair Trading with OMX Stockholm and Crunchfish
The main advantage of trading using opposite OMX Stockholm and Crunchfish positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, Crunchfish 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 Crunchfish will offset losses from the drop in Crunchfish's long position.| OMX Stockholm vs. Svenska Handelsbanken AB | OMX Stockholm vs. FormPipe Software AB | OMX Stockholm vs. Skandinaviska Enskilda Banken | OMX Stockholm vs. Online Brands Nordic |
| Crunchfish vs. Bambuser AB | Crunchfish vs. Maha Energy AB | Crunchfish vs. Cantargia AB | Crunchfish vs. Minesto 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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