Correlation Between OMX Stockholm and Gapwaves
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By analyzing existing cross correlation between OMX Stockholm Mid and Gapwaves AB Series, you can compare the effects of market volatilities on OMX Stockholm and Gapwaves 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 Gapwaves. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and Gapwaves.
Diversification Opportunities for OMX Stockholm and Gapwaves
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between OMX and Gapwaves is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and Gapwaves AB Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gapwaves AB Series 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 Gapwaves. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gapwaves AB Series has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and Gapwaves go up and down completely randomly.
Pair Corralation between OMX Stockholm and Gapwaves
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to generate 0.39 times more return on investment than Gapwaves. However, OMX Stockholm Mid is 2.59 times less risky than Gapwaves. It trades about 0.05 of its potential returns per unit of risk. Gapwaves AB Series is currently generating about -0.03 per unit of risk. If you would invest 135,365 in OMX Stockholm Mid on August 31, 2024 and sell it today you would earn a total of 27,404 from holding OMX Stockholm Mid or generate 20.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
OMX Stockholm Mid vs. Gapwaves AB Series
Performance |
| Timeline |
OMX Stockholm and Gapwaves Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Gapwaves AB Series
Pair trading matchups for Gapwaves
Pair Trading with OMX Stockholm and Gapwaves
The main advantage of trading using opposite OMX Stockholm and Gapwaves positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, Gapwaves 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 Gapwaves will offset losses from the drop in Gapwaves' 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 |
| Gapwaves vs. SaltX Technology Holding | Gapwaves vs. Acconeer AB | Gapwaves vs. GomSpace Group AB | Gapwaves 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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