Correlation Between OMX Stockholm and Havsfrun Investment
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By analyzing existing cross correlation between OMX Stockholm Mid and Havsfrun Investment AB, you can compare the effects of market volatilities on OMX Stockholm and Havsfrun Investment 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 Havsfrun Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and Havsfrun Investment.
Diversification Opportunities for OMX Stockholm and Havsfrun Investment
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between OMX and Havsfrun is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and Havsfrun Investment AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Havsfrun Investment 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 Havsfrun Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Havsfrun Investment has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and Havsfrun Investment go up and down completely randomly.
Pair Corralation between OMX Stockholm and Havsfrun Investment
Assuming the 90 days trading horizon OMX Stockholm is expected to generate 1.5 times less return on investment than Havsfrun Investment. But when comparing it to its historical volatility, OMX Stockholm Mid is 3.41 times less risky than Havsfrun Investment. It trades about 0.05 of its potential returns per unit of risk. Havsfrun Investment AB is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,261 in Havsfrun Investment AB on August 26, 2024 and sell it today you would earn a total of 109.00 from holding Havsfrun Investment AB or generate 8.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
OMX Stockholm Mid vs. Havsfrun Investment AB
Performance |
| Timeline |
OMX Stockholm and Havsfrun Investment Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Havsfrun Investment AB
Pair trading matchups for Havsfrun Investment
Pair Trading with OMX Stockholm and Havsfrun Investment
The main advantage of trading using opposite OMX Stockholm and Havsfrun Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, Havsfrun Investment 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 Havsfrun Investment will offset losses from the drop in Havsfrun Investment's long position.| OMX Stockholm vs. Havsfrun Investment AB | OMX Stockholm vs. SaltX Technology Holding | OMX Stockholm vs. FormPipe Software AB | OMX Stockholm vs. Investment AB Oresund |
| Havsfrun Investment vs. FormPipe Software AB | Havsfrun Investment vs. Novotek AB | Havsfrun Investment vs. KABE Group AB | Havsfrun Investment vs. IAR Systems Group |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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