Correlation Between OMX Stockholm and Kinnevik Investment
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By analyzing existing cross correlation between OMX Stockholm Mid and Kinnevik Investment AB, you can compare the effects of market volatilities on OMX Stockholm and Kinnevik 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 Kinnevik Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and Kinnevik Investment.
Diversification Opportunities for OMX Stockholm and Kinnevik Investment
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between OMX and Kinnevik is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and Kinnevik Investment AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinnevik 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 Kinnevik Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinnevik Investment has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and Kinnevik Investment go up and down completely randomly.
Pair Corralation between OMX Stockholm and Kinnevik Investment
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to under-perform the Kinnevik Investment. But the index apears to be less risky and, when comparing its historical volatility, OMX Stockholm Mid is 2.79 times less risky than Kinnevik Investment. The index trades about -0.2 of its potential returns per unit of risk. The Kinnevik Investment AB is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 7,737 in Kinnevik Investment AB on August 28, 2024 and sell it today you would lose (52.00) from holding Kinnevik Investment AB or give up 0.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OMX Stockholm Mid vs. Kinnevik Investment AB
Performance |
| Timeline |
OMX Stockholm and Kinnevik Investment Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Kinnevik Investment AB
Pair trading matchups for Kinnevik Investment
Pair Trading with OMX Stockholm and Kinnevik Investment
The main advantage of trading using opposite OMX Stockholm and Kinnevik Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, Kinnevik 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 Kinnevik Investment will offset losses from the drop in Kinnevik Investment's long position.| OMX Stockholm vs. Skandinaviska Enskilda Banken | OMX Stockholm vs. Indutrade AB | OMX Stockholm vs. Arion banki hf | OMX Stockholm vs. Fractal Gaming Group |
| Kinnevik Investment vs. Investor AB ser | Kinnevik Investment vs. Investment AB Latour | Kinnevik Investment vs. Industrivarden AB ser | Kinnevik Investment vs. Tele2 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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