Correlation Between OMX Stockholm and Lime Technologies
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By analyzing existing cross correlation between OMX Stockholm Mid and Lime Technologies AB, you can compare the effects of market volatilities on OMX Stockholm and Lime Technologies 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 Lime Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and Lime Technologies.
Diversification Opportunities for OMX Stockholm and Lime Technologies
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between OMX and Lime is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and Lime Technologies AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lime Technologies 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 Lime Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lime Technologies has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and Lime Technologies go up and down completely randomly.
Pair Corralation between OMX Stockholm and Lime Technologies
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to under-perform the Lime Technologies. But the index apears to be less risky and, when comparing its historical volatility, OMX Stockholm Mid is 3.94 times less risky than Lime Technologies. The index trades about -0.07 of its potential returns per unit of risk. The Lime Technologies AB is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 32,800 in Lime Technologies AB on September 1, 2024 and sell it today you would earn a total of 4,550 from holding Lime Technologies AB or generate 13.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
OMX Stockholm Mid vs. Lime Technologies AB
Performance |
| Timeline |
OMX Stockholm and Lime Technologies Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Lime Technologies AB
Pair trading matchups for Lime Technologies
Pair Trading with OMX Stockholm and Lime Technologies
The main advantage of trading using opposite OMX Stockholm and Lime Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, Lime Technologies 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 Lime Technologies will offset losses from the drop in Lime Technologies' long position.| OMX Stockholm vs. Beowulf Mining PLC | OMX Stockholm vs. Swedbank AB | OMX Stockholm vs. Arion banki hf | OMX Stockholm vs. TradeDoubler AB |
| Lime Technologies vs. Catena Media plc | Lime Technologies vs. Kambi Group PLC | Lime Technologies vs. Betsson AB | Lime Technologies vs. Invisio Communications 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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