Correlation Between OMX Stockholm and CoinShares International
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By analyzing existing cross correlation between OMX Stockholm Mid and CoinShares International, you can compare the effects of market volatilities on OMX Stockholm and CoinShares International 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 CoinShares International. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and CoinShares International.
Diversification Opportunities for OMX Stockholm and CoinShares International
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between OMX and CoinShares is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and CoinShares International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CoinShares International 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 CoinShares International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CoinShares International has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and CoinShares International go up and down completely randomly.
Pair Corralation between OMX Stockholm and CoinShares International
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to under-perform the CoinShares International. But the index apears to be less risky and, when comparing its historical volatility, OMX Stockholm Mid is 6.57 times less risky than CoinShares International. The index trades about -0.19 of its potential returns per unit of risk. The CoinShares International is currently generating about 0.44 of returns per unit of risk over similar time horizon. If you would invest 5,070 in CoinShares International on August 29, 2024 and sell it today you would earn a total of 3,250 from holding CoinShares International or generate 64.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OMX Stockholm Mid vs. CoinShares International
Performance |
| Timeline |
OMX Stockholm and CoinShares International Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
CoinShares International
Pair trading matchups for CoinShares International
Pair Trading with OMX Stockholm and CoinShares International
The main advantage of trading using opposite OMX Stockholm and CoinShares International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, CoinShares International 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 CoinShares International will offset losses from the drop in CoinShares International'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 |
| CoinShares International vs. Cint Group AB | CoinShares International vs. Bonesupport Holding AB | CoinShares International vs. Catena Media plc | CoinShares International vs. Hexatronic Group 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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