Correlation Between OMX Stockholm and Moberg Pharma
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By analyzing existing cross correlation between OMX Stockholm Mid and Moberg Pharma AB, you can compare the effects of market volatilities on OMX Stockholm and Moberg Pharma 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 Moberg Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and Moberg Pharma.
Diversification Opportunities for OMX Stockholm and Moberg Pharma
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between OMX and Moberg is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and Moberg Pharma AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moberg Pharma 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 Moberg Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moberg Pharma AB has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and Moberg Pharma go up and down completely randomly.
Pair Corralation between OMX Stockholm and Moberg Pharma
Assuming the 90 days trading horizon OMX Stockholm is expected to generate 6.01 times less return on investment than Moberg Pharma. But when comparing it to its historical volatility, OMX Stockholm Mid is 8.69 times less risky than Moberg Pharma. It trades about 0.08 of its potential returns per unit of risk. Moberg Pharma AB is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,650 in Moberg Pharma AB on August 25, 2024 and sell it today you would earn a total of 176.00 from holding Moberg Pharma AB or generate 10.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.47% |
| Values | Daily Returns |
OMX Stockholm Mid vs. Moberg Pharma AB
Performance |
| Timeline |
OMX Stockholm and Moberg Pharma Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Moberg Pharma AB
Pair trading matchups for Moberg Pharma
Pair Trading with OMX Stockholm and Moberg Pharma
The main advantage of trading using opposite OMX Stockholm and Moberg Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, Moberg Pharma 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 Moberg Pharma will offset losses from the drop in Moberg Pharma'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 |
| Moberg Pharma vs. Swedencare publ AB | Moberg Pharma vs. Enzymatica publ AB | Moberg Pharma vs. KABE Group AB | Moberg Pharma 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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