Correlation Between OMX Stockholm and Flexion Mobile
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By analyzing existing cross correlation between OMX Stockholm Mid and Flexion Mobile PLC, you can compare the effects of market volatilities on OMX Stockholm and Flexion Mobile 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 Flexion Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and Flexion Mobile.
Diversification Opportunities for OMX Stockholm and Flexion Mobile
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between OMX and Flexion is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and Flexion Mobile PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flexion Mobile PLC 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 Flexion Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flexion Mobile PLC has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and Flexion Mobile go up and down completely randomly.
Pair Corralation between OMX Stockholm and Flexion Mobile
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to generate 0.26 times more return on investment than Flexion Mobile. However, OMX Stockholm Mid is 3.79 times less risky than Flexion Mobile. It trades about -0.05 of its potential returns per unit of risk. Flexion Mobile PLC is currently generating about -0.03 per unit of risk. If you would invest 166,243 in OMX Stockholm Mid on September 3, 2024 and sell it today you would lose (2,756) from holding OMX Stockholm Mid or give up 1.66% 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. Flexion Mobile PLC
Performance |
| Timeline |
OMX Stockholm and Flexion Mobile Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Flexion Mobile PLC
Pair trading matchups for Flexion Mobile
Pair Trading with OMX Stockholm and Flexion Mobile
The main advantage of trading using opposite OMX Stockholm and Flexion Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, Flexion Mobile 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 Flexion Mobile will offset losses from the drop in Flexion Mobile's long position.| OMX Stockholm vs. Investment AB Oresund | OMX Stockholm vs. MTI Investment SE | OMX Stockholm vs. Kinnevik Investment AB | OMX Stockholm vs. Axfood AB |
| Flexion Mobile vs. Idogen AB | Flexion Mobile vs. Clean Motion AB | Flexion Mobile vs. Arion banki hf | Flexion Mobile 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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