Correlation Between OMX Stockholm and Lindab International
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By analyzing existing cross correlation between OMX Stockholm Mid and Lindab International AB, you can compare the effects of market volatilities on OMX Stockholm and Lindab International 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 Lindab International. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and Lindab International.
Diversification Opportunities for OMX Stockholm and Lindab International
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between OMX and Lindab is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and Lindab International AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lindab International 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 Lindab International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lindab International has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and Lindab International go up and down completely randomly.
Pair Corralation between OMX Stockholm and Lindab International
Assuming the 90 days trading horizon OMX Stockholm is expected to generate 1.11 times less return on investment than Lindab International. But when comparing it to its historical volatility, OMX Stockholm Mid is 2.39 times less risky than Lindab International. It trades about 0.08 of its potential returns per unit of risk. Lindab International AB is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 21,116 in Lindab International AB on August 25, 2024 and sell it today you would earn a total of 2,184 from holding Lindab International AB or generate 10.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.47% |
| Values | Daily Returns |
OMX Stockholm Mid vs. Lindab International AB
Performance |
| Timeline |
OMX Stockholm and Lindab International Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Lindab International AB
Pair trading matchups for Lindab International
Pair Trading with OMX Stockholm and Lindab International
The main advantage of trading using opposite OMX Stockholm and Lindab International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, Lindab International 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 Lindab International will offset losses from the drop in Lindab International'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 |
| Lindab International vs. Addtech AB | Lindab International vs. Teqnion AB | Lindab International vs. Vitec Software Group | Lindab International vs. Lagercrantz 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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