Correlation Between OMX Stockholm and Fram Skandinavien
Specify exactly 2 symbols:
By analyzing existing cross correlation between OMX Stockholm Mid and Fram Skandinavien AB, you can compare the effects of market volatilities on OMX Stockholm and Fram Skandinavien 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 Fram Skandinavien. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and Fram Skandinavien.
Diversification Opportunities for OMX Stockholm and Fram Skandinavien
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between OMX and Fram is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and Fram Skandinavien AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fram Skandinavien 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 Fram Skandinavien. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fram Skandinavien has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and Fram Skandinavien go up and down completely randomly.
Pair Corralation between OMX Stockholm and Fram Skandinavien
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to generate 0.33 times more return on investment than Fram Skandinavien. However, OMX Stockholm Mid is 3.01 times less risky than Fram Skandinavien. It trades about 0.05 of its potential returns per unit of risk. Fram Skandinavien AB is currently generating about -0.11 per unit of risk. If you would invest 130,025 in OMX Stockholm Mid on August 29, 2024 and sell it today you would earn a total of 31,972 from holding OMX Stockholm Mid or generate 24.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
OMX Stockholm Mid vs. Fram Skandinavien AB
Performance |
| Timeline |
OMX Stockholm and Fram Skandinavien Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Fram Skandinavien AB
Pair trading matchups for Fram Skandinavien
Pair Trading with OMX Stockholm and Fram Skandinavien
The main advantage of trading using opposite OMX Stockholm and Fram Skandinavien positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, Fram Skandinavien 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 Fram Skandinavien will offset losses from the drop in Fram Skandinavien'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 |
| Fram Skandinavien vs. Softronic AB | Fram Skandinavien vs. Prevas AB | Fram Skandinavien vs. FormPipe Software AB | Fram Skandinavien vs. Dedicare 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Stocks Directory Find actively traded stocks across global markets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |