Correlation Between OMX Stockholm and Lipidor Ab
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By analyzing existing cross correlation between OMX Stockholm Mid and Lipidor Ab, you can compare the effects of market volatilities on OMX Stockholm and Lipidor Ab 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 Lipidor Ab. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and Lipidor Ab.
Diversification Opportunities for OMX Stockholm and Lipidor Ab
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between OMX and Lipidor is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and Lipidor Ab in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lipidor 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 Lipidor Ab. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lipidor Ab has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and Lipidor Ab go up and down completely randomly.
Pair Corralation between OMX Stockholm and Lipidor Ab
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to under-perform the Lipidor Ab. But the index apears to be less risky and, when comparing its historical volatility, OMX Stockholm Mid is 6.85 times less risky than Lipidor Ab. The index trades about -0.12 of its potential returns per unit of risk. The Lipidor Ab is currently generating about 0.74 of returns per unit of risk over similar time horizon. If you would invest 17.00 in Lipidor Ab on October 12, 2024 and sell it today you would earn a total of 15.00 from holding Lipidor Ab or generate 88.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OMX Stockholm Mid vs. Lipidor Ab
Performance |
| Timeline |
OMX Stockholm and Lipidor Ab Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Lipidor Ab
Pair trading matchups for Lipidor Ab
Pair Trading with OMX Stockholm and Lipidor Ab
The main advantage of trading using opposite OMX Stockholm and Lipidor Ab positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, Lipidor Ab 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 Lipidor Ab will offset losses from the drop in Lipidor Ab's long position.| OMX Stockholm vs. Vitec Software Group | OMX Stockholm vs. Soder Sportfiske AB | OMX Stockholm vs. USWE Sports AB | OMX Stockholm vs. Scandinavian ChemoTech AB |
| Lipidor Ab vs. BioInvent International AB | Lipidor Ab vs. Hansa Biopharma AB | Lipidor Ab vs. ExpreS2ion Biotech Holding | Lipidor Ab vs. Saniona 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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