Correlation Between OMX Stockholm and Nordisk Bergteknik
Specify exactly 2 symbols:
By analyzing existing cross correlation between OMX Stockholm Mid and Nordisk Bergteknik AB, you can compare the effects of market volatilities on OMX Stockholm and Nordisk Bergteknik 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 Nordisk Bergteknik. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and Nordisk Bergteknik.
Diversification Opportunities for OMX Stockholm and Nordisk Bergteknik
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between OMX and Nordisk is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and Nordisk Bergteknik AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordisk Bergteknik 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 Nordisk Bergteknik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordisk Bergteknik has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and Nordisk Bergteknik go up and down completely randomly.
Pair Corralation between OMX Stockholm and Nordisk Bergteknik
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to generate 0.39 times more return on investment than Nordisk Bergteknik. However, OMX Stockholm Mid is 2.54 times less risky than Nordisk Bergteknik. It trades about -0.07 of its potential returns per unit of risk. Nordisk Bergteknik AB is currently generating about -0.42 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OMX Stockholm Mid vs. Nordisk Bergteknik AB
Performance |
| Timeline |
OMX Stockholm and Nordisk Bergteknik Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Nordisk Bergteknik AB
Pair trading matchups for Nordisk Bergteknik
Pair Trading with OMX Stockholm and Nordisk Bergteknik
The main advantage of trading using opposite OMX Stockholm and Nordisk Bergteknik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, Nordisk Bergteknik 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 Nordisk Bergteknik will offset losses from the drop in Nordisk Bergteknik'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 |
| Nordisk Bergteknik vs. Ctek AB | Nordisk Bergteknik vs. NCAB Group | Nordisk Bergteknik vs. Bufab Holding AB | Nordisk Bergteknik vs. Profoto Holding 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Transaction History View history of all your transactions and understand their impact on performance |