Correlation Between OMX Stockholm and Mentice AB
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By analyzing existing cross correlation between OMX Stockholm Mid and Mentice AB, you can compare the effects of market volatilities on OMX Stockholm and Mentice 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 Mentice AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and Mentice AB.
Diversification Opportunities for OMX Stockholm and Mentice AB
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between OMX and Mentice is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and Mentice AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mentice 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 Mentice AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mentice AB has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and Mentice AB go up and down completely randomly.
Pair Corralation between OMX Stockholm and Mentice AB
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to generate 0.26 times more return on investment than Mentice AB. However, OMX Stockholm Mid is 3.88 times less risky than Mentice AB. It trades about 0.13 of its potential returns per unit of risk. Mentice AB is currently generating about -0.04 per unit of risk. If you would invest 118,528 in OMX Stockholm Mid on August 26, 2024 and sell it today you would earn a total of 43,187 from holding OMX Stockholm Mid or generate 36.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.63% |
| Values | Daily Returns |
OMX Stockholm Mid vs. Mentice AB
Performance |
| Timeline |
OMX Stockholm and Mentice AB Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Mentice AB
Pair trading matchups for Mentice AB
Pair Trading with OMX Stockholm and Mentice AB
The main advantage of trading using opposite OMX Stockholm and Mentice AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, Mentice 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 Mentice AB will offset losses from the drop in Mentice AB's long position.| OMX Stockholm vs. Havsfrun Investment AB | OMX Stockholm vs. SaltX Technology Holding | OMX Stockholm vs. FormPipe Software AB | OMX Stockholm vs. Investment AB Oresund |
| Mentice AB vs. Surgical Science Sweden | Mentice AB vs. C Rad AB | Mentice AB vs. Xvivo Perfusion AB | Mentice AB vs. Biotage 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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