Correlation Between OMX Stockholm and Midsummer
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By analyzing existing cross correlation between OMX Stockholm Mid and Midsummer AB, you can compare the effects of market volatilities on OMX Stockholm and Midsummer 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 Midsummer. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and Midsummer.
Diversification Opportunities for OMX Stockholm and Midsummer
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between OMX and Midsummer is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and Midsummer AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Midsummer 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 Midsummer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Midsummer AB has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and Midsummer go up and down completely randomly.
Pair Corralation between OMX Stockholm and Midsummer
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to under-perform the Midsummer. But the index apears to be less risky and, when comparing its historical volatility, OMX Stockholm Mid is 4.62 times less risky than Midsummer. The index trades about -0.2 of its potential returns per unit of risk. The Midsummer AB is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 103.00 in Midsummer AB on August 28, 2024 and sell it today you would lose (2.00) from holding Midsummer AB or give up 1.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OMX Stockholm Mid vs. Midsummer AB
Performance |
| Timeline |
OMX Stockholm and Midsummer Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Midsummer AB
Pair trading matchups for Midsummer
Pair Trading with OMX Stockholm and Midsummer
The main advantage of trading using opposite OMX Stockholm and Midsummer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, Midsummer 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 Midsummer will offset losses from the drop in Midsummer's long position.| OMX Stockholm vs. Investment AB Oresund | OMX Stockholm vs. Nordic Asia Investment | OMX Stockholm vs. Havsfrun Investment AB | OMX Stockholm vs. Raketech Group Holding |
| Midsummer vs. Online Brands Nordic | Midsummer vs. Lohilo Foods AB | Midsummer vs. Invisio Communications AB | Midsummer vs. Systemair 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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