Correlation Between OMX Stockholm and Fagerhult
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By analyzing existing cross correlation between OMX Stockholm Mid and Fagerhult AB, you can compare the effects of market volatilities on OMX Stockholm and Fagerhult 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 Fagerhult. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and Fagerhult.
Diversification Opportunities for OMX Stockholm and Fagerhult
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between OMX and Fagerhult is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and Fagerhult AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fagerhult 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 Fagerhult. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fagerhult AB has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and Fagerhult go up and down completely randomly.
Pair Corralation between OMX Stockholm and Fagerhult
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to generate 0.44 times more return on investment than Fagerhult. However, OMX Stockholm Mid is 2.26 times less risky than Fagerhult. It trades about 0.07 of its potential returns per unit of risk. Fagerhult AB is currently generating about 0.0 per unit of risk. If you would invest 133,289 in OMX Stockholm Mid on August 31, 2024 and sell it today you would earn a total of 30,198 from holding OMX Stockholm Mid or generate 22.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.74% |
| Values | Daily Returns |
OMX Stockholm Mid vs. Fagerhult AB
Performance |
| Timeline |
OMX Stockholm and Fagerhult Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Fagerhult AB
Pair trading matchups for Fagerhult
Pair Trading with OMX Stockholm and Fagerhult
The main advantage of trading using opposite OMX Stockholm and Fagerhult positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, Fagerhult 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 Fagerhult will offset losses from the drop in Fagerhult's long position.| OMX Stockholm vs. SaveLend Group AB | OMX Stockholm vs. Skandinaviska Enskilda Banken | OMX Stockholm vs. Havsfrun Investment AB | OMX Stockholm vs. New Nordic Healthbrands |
| Fagerhult vs. Samhllsbyggnadsbolaget i Norden | Fagerhult vs. Sinch AB | Fagerhult vs. Embracer Group AB | Fagerhult vs. Evolution 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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