Correlation Between OMX Stockholm and Clemondo Group
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By analyzing existing cross correlation between OMX Stockholm Mid and Clemondo Group AB, you can compare the effects of market volatilities on OMX Stockholm and Clemondo 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 Clemondo Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and Clemondo Group.
Diversification Opportunities for OMX Stockholm and Clemondo Group
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between OMX and Clemondo is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and Clemondo Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clemondo 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 Clemondo Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clemondo Group AB has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and Clemondo Group go up and down completely randomly.
Pair Corralation between OMX Stockholm and Clemondo Group
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to under-perform the Clemondo Group. But the index apears to be less risky and, when comparing its historical volatility, OMX Stockholm Mid is 2.83 times less risky than Clemondo Group. The index trades about -0.19 of its potential returns per unit of risk. The Clemondo Group AB is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 77.00 in Clemondo Group AB on August 30, 2024 and sell it today you would lose (1.00) from holding Clemondo Group AB or give up 1.3% 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. Clemondo Group AB
Performance |
| Timeline |
OMX Stockholm and Clemondo Group Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Clemondo Group AB
Pair trading matchups for Clemondo Group
Pair Trading with OMX Stockholm and Clemondo Group
The main advantage of trading using opposite OMX Stockholm and Clemondo Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, Clemondo 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 Clemondo Group will offset losses from the drop in Clemondo Group'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 |
| Clemondo Group vs. Kancera AB | Clemondo Group vs. Acarix AS | Clemondo Group vs. Bambuser AB | Clemondo Group vs. Spectrumone publ 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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