Correlation Between OMX Stockholm and Isofol Medical
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By analyzing existing cross correlation between OMX Stockholm Mid and Isofol Medical AB, you can compare the effects of market volatilities on OMX Stockholm and Isofol Medical 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 Isofol Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and Isofol Medical.
Diversification Opportunities for OMX Stockholm and Isofol Medical
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between OMX and Isofol is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and Isofol Medical AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Isofol Medical 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 Isofol Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Isofol Medical AB has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and Isofol Medical go up and down completely randomly.
Pair Corralation between OMX Stockholm and Isofol Medical
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to generate 0.18 times more return on investment than Isofol Medical. However, OMX Stockholm Mid is 5.42 times less risky than Isofol Medical. It trades about -0.06 of its potential returns per unit of risk. Isofol Medical AB is currently generating about -0.2 per unit of risk. If you would invest 165,403 in OMX Stockholm Mid on September 3, 2024 and sell it today you would lose (1,916) from holding OMX Stockholm Mid or give up 1.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OMX Stockholm Mid vs. Isofol Medical AB
Performance |
| Timeline |
OMX Stockholm and Isofol Medical Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Isofol Medical AB
Pair trading matchups for Isofol Medical
Pair Trading with OMX Stockholm and Isofol Medical
The main advantage of trading using opposite OMX Stockholm and Isofol Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, Isofol Medical 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 Isofol Medical will offset losses from the drop in Isofol Medical'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 |
| Isofol Medical vs. Simris Alg AB | Isofol Medical vs. Immunovia publ AB | Isofol Medical vs. Sedana Medical AB | Isofol Medical 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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