Correlation Between OMX Stockholm and Exsitec Holding
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By analyzing existing cross correlation between OMX Stockholm Mid and Exsitec Holding AB, you can compare the effects of market volatilities on OMX Stockholm and Exsitec Holding 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 Exsitec Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and Exsitec Holding.
Diversification Opportunities for OMX Stockholm and Exsitec Holding
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between OMX and Exsitec is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and Exsitec Holding AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exsitec Holding 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 Exsitec Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exsitec Holding AB has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and Exsitec Holding go up and down completely randomly.
Pair Corralation between OMX Stockholm and Exsitec Holding
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to under-perform the Exsitec Holding. But the index apears to be less risky and, when comparing its historical volatility, OMX Stockholm Mid is 2.63 times less risky than Exsitec Holding. The index trades about -0.07 of its potential returns per unit of risk. The Exsitec Holding AB is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 13,800 in Exsitec Holding AB on September 1, 2024 and sell it today you would earn a total of 600.00 from holding Exsitec Holding AB or generate 4.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OMX Stockholm Mid vs. Exsitec Holding AB
Performance |
| Timeline |
OMX Stockholm and Exsitec Holding Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Exsitec Holding AB
Pair trading matchups for Exsitec Holding
Pair Trading with OMX Stockholm and Exsitec Holding
The main advantage of trading using opposite OMX Stockholm and Exsitec Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, Exsitec Holding 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 Exsitec Holding will offset losses from the drop in Exsitec Holding'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 |
| Exsitec Holding vs. DevPort AB | Exsitec Holding vs. B3 Consulting Group | Exsitec Holding vs. Micro Systemation 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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