Correlation Between OMX Stockholm and Munters Group
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By analyzing existing cross correlation between OMX Stockholm Mid and Munters Group AB, you can compare the effects of market volatilities on OMX Stockholm and Munters 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 Munters Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and Munters Group.
Diversification Opportunities for OMX Stockholm and Munters Group
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between OMX and Munters is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and Munters Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Munters 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 Munters Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Munters Group AB has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and Munters Group go up and down completely randomly.
Pair Corralation between OMX Stockholm and Munters Group
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to generate 0.24 times more return on investment than Munters Group. However, OMX Stockholm Mid is 4.1 times less risky than Munters Group. It trades about -0.25 of its potential returns per unit of risk. Munters Group AB is currently generating about -0.12 per unit of risk. If you would invest 167,920 in OMX Stockholm Mid on August 29, 2024 and sell it today you would lose (7,245) from holding OMX Stockholm Mid or give up 4.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OMX Stockholm Mid vs. Munters Group AB
Performance |
| Timeline |
OMX Stockholm and Munters Group Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Munters Group AB
Pair trading matchups for Munters Group
Pair Trading with OMX Stockholm and Munters Group
The main advantage of trading using opposite OMX Stockholm and Munters Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, Munters 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 Munters Group will offset losses from the drop in Munters Group's long position.| OMX Stockholm vs. Svenska Handelsbanken AB | OMX Stockholm vs. FormPipe Software AB | OMX Stockholm vs. Skandinaviska Enskilda Banken | OMX Stockholm vs. Online Brands Nordic |
| Munters Group vs. Lindab International AB | Munters Group vs. Nolato AB | Munters Group vs. Trelleborg AB | Munters Group vs. BillerudKorsnas 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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