Correlation Between OMX Stockholm and FastPartner
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By analyzing existing cross correlation between OMX Stockholm Mid and FastPartner AB, you can compare the effects of market volatilities on OMX Stockholm and FastPartner 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 FastPartner. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and FastPartner.
Diversification Opportunities for OMX Stockholm and FastPartner
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between OMX and FastPartner is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and FastPartner AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FastPartner 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 FastPartner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FastPartner AB has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and FastPartner go up and down completely randomly.
Pair Corralation between OMX Stockholm and FastPartner
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to under-perform the FastPartner. But the index apears to be less risky and, when comparing its historical volatility, OMX Stockholm Mid is 2.26 times less risky than FastPartner. The index trades about -0.02 of its potential returns per unit of risk. The FastPartner AB is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 7,220 in FastPartner AB on September 1, 2024 and sell it today you would lose (280.00) from holding FastPartner AB or give up 3.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.23% |
| Values | Daily Returns |
OMX Stockholm Mid vs. FastPartner AB
Performance |
| Timeline |
OMX Stockholm and FastPartner Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
FastPartner AB
Pair trading matchups for FastPartner
Pair Trading with OMX Stockholm and FastPartner
The main advantage of trading using opposite OMX Stockholm and FastPartner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, FastPartner 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 FastPartner will offset losses from the drop in FastPartner'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 |
| FastPartner vs. Samhaellsbyggnadsbolaget i Norden | FastPartner vs. AB Sagax | FastPartner vs. Atrium Ljungberg AB | FastPartner vs. Nyfosa 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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