Correlation Between OMX Stockholm and Nanologica
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By analyzing existing cross correlation between OMX Stockholm Mid and Nanologica AB, you can compare the effects of market volatilities on OMX Stockholm and Nanologica 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 Nanologica. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and Nanologica.
Diversification Opportunities for OMX Stockholm and Nanologica
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between OMX and Nanologica is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and Nanologica AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanologica 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 Nanologica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanologica AB has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and Nanologica go up and down completely randomly.
Pair Corralation between OMX Stockholm and Nanologica
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to generate 0.18 times more return on investment than Nanologica. However, OMX Stockholm Mid is 5.45 times less risky than Nanologica. It trades about 0.11 of its potential returns per unit of risk. Nanologica AB is currently generating about -0.13 per unit of risk. If you would invest 129,678 in OMX Stockholm Mid on August 25, 2024 and sell it today you would earn a total of 32,037 from holding OMX Stockholm Mid or generate 24.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
OMX Stockholm Mid vs. Nanologica AB
Performance |
| Timeline |
OMX Stockholm and Nanologica Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Nanologica AB
Pair trading matchups for Nanologica
Pair Trading with OMX Stockholm and Nanologica
The main advantage of trading using opposite OMX Stockholm and Nanologica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, Nanologica 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 Nanologica will offset losses from the drop in Nanologica'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 |
| Nanologica vs. Senzime AB | Nanologica vs. C Rad AB | Nanologica vs. CellaVision AB | Nanologica vs. Episurf Medical 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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