Correlation Between OMX Stockholm and Enorama Pharma
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By analyzing existing cross correlation between OMX Stockholm Mid and Enorama Pharma AB, you can compare the effects of market volatilities on OMX Stockholm and Enorama Pharma 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 Enorama Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and Enorama Pharma.
Diversification Opportunities for OMX Stockholm and Enorama Pharma
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between OMX and Enorama is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and Enorama Pharma AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enorama Pharma 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 Enorama Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enorama Pharma AB has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and Enorama Pharma go up and down completely randomly.
Pair Corralation between OMX Stockholm and Enorama Pharma
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to under-perform the Enorama Pharma. But the index apears to be less risky and, when comparing its historical volatility, OMX Stockholm Mid is 8.83 times less risky than Enorama Pharma. The index trades about -0.04 of its potential returns per unit of risk. The Enorama Pharma AB is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 233.00 in Enorama Pharma AB on August 29, 2024 and sell it today you would earn a total of 143.00 from holding Enorama Pharma AB or generate 61.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.22% |
| Values | Daily Returns |
OMX Stockholm Mid vs. Enorama Pharma AB
Performance |
| Timeline |
OMX Stockholm and Enorama Pharma Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Enorama Pharma AB
Pair trading matchups for Enorama Pharma
Pair Trading with OMX Stockholm and Enorama Pharma
The main advantage of trading using opposite OMX Stockholm and Enorama Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, Enorama Pharma 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 Enorama Pharma will offset losses from the drop in Enorama Pharma'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 |
| Enorama Pharma vs. Cantargia AB | Enorama Pharma vs. Enzymatica publ AB | Enorama Pharma vs. Lidds AB | Enorama Pharma vs. BioArctic 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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