Correlation Between OMX Stockholm and Midsona AB
Specify exactly 2 symbols:
By analyzing existing cross correlation between OMX Stockholm Mid and Midsona AB, you can compare the effects of market volatilities on OMX Stockholm and Midsona 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 Midsona AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and Midsona AB.
Diversification Opportunities for OMX Stockholm and Midsona AB
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between OMX and Midsona is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and Midsona AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Midsona 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 Midsona AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Midsona AB has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and Midsona AB go up and down completely randomly.
Pair Corralation between OMX Stockholm and Midsona AB
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to generate 0.31 times more return on investment than Midsona AB. However, OMX Stockholm Mid is 3.23 times less risky than Midsona AB. It trades about -0.07 of its potential returns per unit of risk. Midsona AB is currently generating about -0.16 per unit of risk. If you would invest 165,549 in OMX Stockholm Mid on September 1, 2024 and sell it today you would lose (2,062) from holding OMX Stockholm Mid or give up 1.25% 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. Midsona AB
Performance |
| Timeline |
OMX Stockholm and Midsona AB Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Midsona AB
Pair trading matchups for Midsona AB
Pair Trading with OMX Stockholm and Midsona AB
The main advantage of trading using opposite OMX Stockholm and Midsona AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, Midsona 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 Midsona AB will offset losses from the drop in Midsona AB's long position.| OMX Stockholm vs. Beowulf Mining PLC | OMX Stockholm vs. Swedbank AB | OMX Stockholm vs. Arion banki hf | OMX Stockholm vs. TradeDoubler AB |
| Midsona AB vs. Know IT AB | Midsona AB vs. Cloetta AB | Midsona AB vs. BioGaia AB | Midsona AB vs. Byggmax Group 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |