Correlation Between OMX Stockholm and Ellen AB
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By analyzing existing cross correlation between OMX Stockholm Mid and Ellen AB, you can compare the effects of market volatilities on OMX Stockholm and Ellen AB 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 Ellen AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and Ellen AB.
Diversification Opportunities for OMX Stockholm and Ellen AB
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between OMX and Ellen is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and Ellen AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ellen 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 Ellen AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ellen AB has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and Ellen AB go up and down completely randomly.
Pair Corralation between OMX Stockholm and Ellen AB
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to generate 0.35 times more return on investment than Ellen AB. However, OMX Stockholm Mid is 2.82 times less risky than Ellen AB. It trades about -0.02 of its potential returns per unit of risk. Ellen AB is currently generating about -0.07 per unit of risk. If you would invest 168,677 in OMX Stockholm Mid on September 1, 2024 and sell it today you would lose (5,190) from holding OMX Stockholm Mid or give up 3.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.23% |
| Values | Daily Returns |
OMX Stockholm Mid vs. Ellen AB
Performance |
| Timeline |
OMX Stockholm and Ellen AB Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Ellen AB
Pair trading matchups for Ellen AB
Pair Trading with OMX Stockholm and Ellen AB
The main advantage of trading using opposite OMX Stockholm and Ellen AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, Ellen AB 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 Ellen AB will offset losses from the drop in Ellen AB'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 |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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