Correlation Between OMX Stockholm and NP3 Fastigheter
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By analyzing existing cross correlation between OMX Stockholm Mid and NP3 Fastigheter AB, you can compare the effects of market volatilities on OMX Stockholm and NP3 Fastigheter 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 NP3 Fastigheter. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and NP3 Fastigheter.
Diversification Opportunities for OMX Stockholm and NP3 Fastigheter
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between OMX and NP3 is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and NP3 Fastigheter AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NP3 Fastigheter 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 NP3 Fastigheter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NP3 Fastigheter AB has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and NP3 Fastigheter go up and down completely randomly.
Pair Corralation between OMX Stockholm and NP3 Fastigheter
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to generate 2.24 times more return on investment than NP3 Fastigheter. However, OMX Stockholm is 2.24 times more volatile than NP3 Fastigheter AB. It trades about 0.29 of its potential returns per unit of risk. NP3 Fastigheter AB is currently generating about 0.21 per unit of risk. If you would invest 165,947 in OMX Stockholm Mid on November 28, 2024 and sell it today you would earn a total of 7,796 from holding OMX Stockholm Mid or generate 4.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OMX Stockholm Mid vs. NP3 Fastigheter AB
Performance |
| Timeline |
OMX Stockholm and NP3 Fastigheter Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
NP3 Fastigheter AB
Pair trading matchups for NP3 Fastigheter
Pair Trading with OMX Stockholm and NP3 Fastigheter
The main advantage of trading using opposite OMX Stockholm and NP3 Fastigheter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, NP3 Fastigheter 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 NP3 Fastigheter will offset losses from the drop in NP3 Fastigheter's long position.| OMX Stockholm vs. Nordea Bank Abp | OMX Stockholm vs. Media and Games | OMX Stockholm vs. Nitro Games Oyj | OMX Stockholm vs. Vitec Software Group |
| NP3 Fastigheter vs. Corem Property Group | NP3 Fastigheter vs. AB Sagax | NP3 Fastigheter vs. NP3 Fastigheter AB | NP3 Fastigheter vs. Samhaellsbyggnadsbolaget i Norden |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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