Correlation Between OMX Stockholm and Kjell Group
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By analyzing existing cross correlation between OMX Stockholm Mid and Kjell Group AB, you can compare the effects of market volatilities on OMX Stockholm and Kjell Group 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 Kjell Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and Kjell Group.
Diversification Opportunities for OMX Stockholm and Kjell Group
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between OMX and Kjell is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and Kjell Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kjell Group 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 Kjell Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kjell Group AB has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and Kjell Group go up and down completely randomly.
Pair Corralation between OMX Stockholm and Kjell Group
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to generate 0.28 times more return on investment than Kjell Group. However, OMX Stockholm Mid is 3.61 times less risky than Kjell Group. It trades about -0.14 of its potential returns per unit of risk. Kjell Group AB is currently generating about -0.54 per unit of risk. If you would invest 165,922 in OMX Stockholm Mid on August 25, 2024 and sell it today you would lose (4,207) from holding OMX Stockholm Mid or give up 2.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OMX Stockholm Mid vs. Kjell Group AB
Performance |
| Timeline |
OMX Stockholm and Kjell Group Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Kjell Group AB
Pair trading matchups for Kjell Group
Pair Trading with OMX Stockholm and Kjell Group
The main advantage of trading using opposite OMX Stockholm and Kjell Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, Kjell Group 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 Kjell Group will offset losses from the drop in Kjell Group'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 |
| Kjell Group vs. Clas Ohlson AB | Kjell Group vs. Ctek AB | Kjell Group vs. Truecaller AB | Kjell Group vs. Dustin 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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