Correlation Between OMX Stockholm and CTT Systems
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By analyzing existing cross correlation between OMX Stockholm Mid and CTT Systems AB, you can compare the effects of market volatilities on OMX Stockholm and CTT Systems 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 CTT Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and CTT Systems.
Diversification Opportunities for OMX Stockholm and CTT Systems
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between OMX and CTT is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and CTT Systems AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CTT Systems 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 CTT Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CTT Systems AB has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and CTT Systems go up and down completely randomly.
Pair Corralation between OMX Stockholm and CTT Systems
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to under-perform the CTT Systems. But the index apears to be less risky and, when comparing its historical volatility, OMX Stockholm Mid is 2.62 times less risky than CTT Systems. The index trades about -0.25 of its potential returns per unit of risk. The CTT Systems AB is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 25,300 in CTT Systems AB on August 28, 2024 and sell it today you would lose (500.00) from holding CTT Systems AB or give up 1.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OMX Stockholm Mid vs. CTT Systems AB
Performance |
| Timeline |
OMX Stockholm and CTT Systems Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
CTT Systems AB
Pair trading matchups for CTT Systems
Pair Trading with OMX Stockholm and CTT Systems
The main advantage of trading using opposite OMX Stockholm and CTT Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, CTT Systems 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 CTT Systems will offset losses from the drop in CTT Systems' long position.| OMX Stockholm vs. Skandinaviska Enskilda Banken | OMX Stockholm vs. Indutrade AB | OMX Stockholm vs. Arion banki hf | OMX Stockholm vs. Fractal Gaming Group |
| CTT Systems vs. aXichem AB | CTT Systems vs. Gaming Corps AB | CTT Systems vs. Cantargia AB | CTT Systems vs. KABE 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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