Correlation Between OMX Stockholm and Kakel Max
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By analyzing existing cross correlation between OMX Stockholm Mid and Kakel Max AB, you can compare the effects of market volatilities on OMX Stockholm and Kakel Max 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 Kakel Max. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and Kakel Max.
Diversification Opportunities for OMX Stockholm and Kakel Max
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between OMX and Kakel is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and Kakel Max AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kakel Max 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 Kakel Max. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kakel Max AB has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and Kakel Max go up and down completely randomly.
Pair Corralation between OMX Stockholm and Kakel Max
Assuming the 90 days trading horizon OMX Stockholm is expected to generate 3.39 times less return on investment than Kakel Max. But when comparing it to its historical volatility, OMX Stockholm Mid is 2.98 times less risky than Kakel Max. It trades about 0.04 of its potential returns per unit of risk. Kakel Max AB is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,000.00 in Kakel Max AB on September 13, 2024 and sell it today you would earn a total of 20.00 from holding Kakel Max AB or generate 2.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
OMX Stockholm Mid vs. Kakel Max AB
Performance |
| Timeline |
OMX Stockholm and Kakel Max Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Kakel Max AB
Pair trading matchups for Kakel Max
Pair Trading with OMX Stockholm and Kakel Max
The main advantage of trading using opposite OMX Stockholm and Kakel Max positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, Kakel Max 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 Kakel Max will offset losses from the drop in Kakel Max's long position.| OMX Stockholm vs. Filo Mining Corp | OMX Stockholm vs. Arctic Blue Beverages | OMX Stockholm vs. Invisio Communications AB | OMX Stockholm vs. AcadeMedia AB |
| Kakel Max vs. aXichem AB | Kakel Max vs. Polygiene AB | Kakel Max vs. Nordic Iron Ore | Kakel Max vs. Arctic Gold Publ |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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