Correlation Between OMX Stockholm and Gabather
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By analyzing existing cross correlation between OMX Stockholm Mid and Gabather AB, you can compare the effects of market volatilities on OMX Stockholm and Gabather 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 Gabather. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and Gabather.
Diversification Opportunities for OMX Stockholm and Gabather
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between OMX and Gabather is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and Gabather AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabather 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 Gabather. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gabather AB has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and Gabather go up and down completely randomly.
Pair Corralation between OMX Stockholm and Gabather
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to under-perform the Gabather. But the index apears to be less risky and, when comparing its historical volatility, OMX Stockholm Mid is 18.15 times less risky than Gabather. The index trades about -0.06 of its potential returns per unit of risk. The Gabather AB is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 45.00 in Gabather AB on September 3, 2024 and sell it today you would earn a total of 3.00 from holding Gabather AB or generate 6.67% 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. Gabather AB
Performance |
| Timeline |
OMX Stockholm and Gabather Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Gabather AB
Pair trading matchups for Gabather
Pair Trading with OMX Stockholm and Gabather
The main advantage of trading using opposite OMX Stockholm and Gabather positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, Gabather 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 Gabather will offset losses from the drop in Gabather'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 |
| Gabather vs. Sprint Bioscience AB | Gabather vs. Corline Biomedical AB | Gabather vs. Cantargia AB | Gabather vs. Lidds 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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