Correlation Between OMX Stockholm and MilDef Group
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By analyzing existing cross correlation between OMX Stockholm Mid and MilDef Group AB, you can compare the effects of market volatilities on OMX Stockholm and MilDef Group 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 MilDef Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and MilDef Group.
Diversification Opportunities for OMX Stockholm and MilDef Group
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between OMX and MilDef is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and MilDef Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MilDef Group 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 MilDef Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MilDef Group AB has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and MilDef Group go up and down completely randomly.
Pair Corralation between OMX Stockholm and MilDef Group
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to under-perform the MilDef Group. But the index apears to be less risky and, when comparing its historical volatility, OMX Stockholm Mid is 3.52 times less risky than MilDef Group. The index trades about -0.11 of its potential returns per unit of risk. The MilDef Group AB is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 9,180 in MilDef Group AB on August 31, 2024 and sell it today you would earn a total of 2,320 from holding MilDef Group AB or generate 25.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OMX Stockholm Mid vs. MilDef Group AB
Performance |
| Timeline |
OMX Stockholm and MilDef Group Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
MilDef Group AB
Pair trading matchups for MilDef Group
Pair Trading with OMX Stockholm and MilDef Group
The main advantage of trading using opposite OMX Stockholm and MilDef Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, MilDef Group 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 MilDef Group will offset losses from the drop in MilDef Group's long position.| OMX Stockholm vs. SaveLend Group AB | OMX Stockholm vs. Skandinaviska Enskilda Banken | OMX Stockholm vs. Havsfrun Investment AB | OMX Stockholm vs. New Nordic Healthbrands |
| MilDef Group vs. Saab AB | MilDef Group vs. CTT Systems AB | MilDef Group vs. W5 Solutions AB | MilDef Group vs. AVTECH Sweden 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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