Correlation Between OMX Stockholm and NIBE Industrier
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By analyzing existing cross correlation between OMX Stockholm Mid and NIBE Industrier AB, you can compare the effects of market volatilities on OMX Stockholm and NIBE Industrier 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 NIBE Industrier. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and NIBE Industrier.
Diversification Opportunities for OMX Stockholm and NIBE Industrier
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between OMX and NIBE is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and NIBE Industrier AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NIBE Industrier 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 NIBE Industrier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NIBE Industrier AB has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and NIBE Industrier go up and down completely randomly.
Pair Corralation between OMX Stockholm and NIBE Industrier
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to generate 0.35 times more return on investment than NIBE Industrier. However, OMX Stockholm Mid is 2.87 times less risky than NIBE Industrier. It trades about 0.05 of its potential returns per unit of risk. NIBE Industrier AB is currently generating about -0.05 per unit of risk. If you would invest 130,196 in OMX Stockholm Mid on August 28, 2024 and sell it today you would earn a total of 32,209 from holding OMX Stockholm Mid or generate 24.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
OMX Stockholm Mid vs. NIBE Industrier AB
Performance |
| Timeline |
OMX Stockholm and NIBE Industrier Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
NIBE Industrier AB
Pair trading matchups for NIBE Industrier
Pair Trading with OMX Stockholm and NIBE Industrier
The main advantage of trading using opposite OMX Stockholm and NIBE Industrier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, NIBE Industrier 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 NIBE Industrier will offset losses from the drop in NIBE Industrier's long position.| OMX Stockholm vs. Skandinaviska Enskilda Banken | OMX Stockholm vs. Indutrade AB | OMX Stockholm vs. Arion banki hf | OMX Stockholm vs. Fractal Gaming Group |
| NIBE Industrier vs. Hexagon AB | NIBE Industrier vs. Investor AB ser | NIBE Industrier vs. Investment AB Latour | NIBE Industrier vs. ASSA ABLOY 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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