Correlation Between OMX Stockholm and MAG Interactive
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By analyzing existing cross correlation between OMX Stockholm Mid and MAG Interactive AB, you can compare the effects of market volatilities on OMX Stockholm and MAG Interactive 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 MAG Interactive. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and MAG Interactive.
Diversification Opportunities for OMX Stockholm and MAG Interactive
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between OMX and MAG is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and MAG Interactive AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAG Interactive 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 MAG Interactive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAG Interactive AB has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and MAG Interactive go up and down completely randomly.
Pair Corralation between OMX Stockholm and MAG Interactive
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to generate 0.35 times more return on investment than MAG Interactive. However, OMX Stockholm Mid is 2.89 times less risky than MAG Interactive. It trades about 0.05 of its potential returns per unit of risk. MAG Interactive AB is currently generating about -0.08 per unit of risk. If you would invest 135,365 in OMX Stockholm Mid on August 28, 2024 and sell it today you would earn a total of 27,040 from holding OMX Stockholm Mid or generate 19.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
OMX Stockholm Mid vs. MAG Interactive AB
Performance |
| Timeline |
OMX Stockholm and MAG Interactive Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
MAG Interactive AB
Pair trading matchups for MAG Interactive
Pair Trading with OMX Stockholm and MAG Interactive
The main advantage of trading using opposite OMX Stockholm and MAG Interactive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, MAG Interactive 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 MAG Interactive will offset losses from the drop in MAG Interactive'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 |
| MAG Interactive vs. Flexion Mobile PLC | MAG Interactive vs. iZafe Group AB | MAG Interactive vs. KABE Group AB | MAG Interactive vs. IAR Systems Group |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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