Correlation Between OMX Stockholm and COOR Service
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By analyzing existing cross correlation between OMX Stockholm Mid and COOR Service Management, you can compare the effects of market volatilities on OMX Stockholm and COOR Service 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 COOR Service. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and COOR Service.
Diversification Opportunities for OMX Stockholm and COOR Service
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between OMX and COOR is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and COOR Service Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COOR Service Management 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 COOR Service. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COOR Service Management has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and COOR Service go up and down completely randomly.
Pair Corralation between OMX Stockholm and COOR Service
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to generate 0.46 times more return on investment than COOR Service. However, OMX Stockholm Mid is 2.18 times less risky than COOR Service. It trades about -0.07 of its potential returns per unit of risk. COOR Service Management is currently generating about -0.26 per unit of risk. If you would invest 165,549 in OMX Stockholm Mid on September 1, 2024 and sell it today you would lose (2,062) from holding OMX Stockholm Mid or give up 1.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
OMX Stockholm Mid vs. COOR Service Management
Performance |
| Timeline |
OMX Stockholm and COOR Service Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
COOR Service Management
Pair trading matchups for COOR Service
Pair Trading with OMX Stockholm and COOR Service
The main advantage of trading using opposite OMX Stockholm and COOR Service positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, COOR Service 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 COOR Service will offset losses from the drop in COOR Service'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 |
| COOR Service vs. Samhllsbyggnadsbolaget i Norden | COOR Service vs. Sinch AB | COOR Service vs. Embracer Group AB | COOR Service vs. Evolution 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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