Correlation Between OMX Stockholm and NextCell Pharma
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By analyzing existing cross correlation between OMX Stockholm Mid and NextCell Pharma AB, you can compare the effects of market volatilities on OMX Stockholm and NextCell Pharma 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 NextCell Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and NextCell Pharma.
Diversification Opportunities for OMX Stockholm and NextCell Pharma
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between OMX and NextCell is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and NextCell Pharma AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NextCell Pharma 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 NextCell Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NextCell Pharma AB has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and NextCell Pharma go up and down completely randomly.
Pair Corralation between OMX Stockholm and NextCell Pharma
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to under-perform the NextCell Pharma. But the index apears to be less risky and, when comparing its historical volatility, OMX Stockholm Mid is 2.27 times less risky than NextCell Pharma. The index trades about -0.07 of its potential returns per unit of risk. The NextCell Pharma AB is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 173.00 in NextCell Pharma AB on September 1, 2024 and sell it today you would earn a total of 2.00 from holding NextCell Pharma AB or generate 1.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OMX Stockholm Mid vs. NextCell Pharma AB
Performance |
| Timeline |
OMX Stockholm and NextCell Pharma Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
NextCell Pharma AB
Pair trading matchups for NextCell Pharma
Pair Trading with OMX Stockholm and NextCell Pharma
The main advantage of trading using opposite OMX Stockholm and NextCell Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, NextCell Pharma 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 NextCell Pharma will offset losses from the drop in NextCell Pharma'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 |
| NextCell Pharma vs. Diamyd Medical AB | NextCell Pharma vs. Mendus AB | NextCell Pharma vs. Vicore Pharma Holding | NextCell Pharma vs. Immunovia publ 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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