Correlation Between OMX Stockholm and Opter AB
Specify exactly 2 symbols:
By analyzing existing cross correlation between OMX Stockholm Mid and Opter AB, you can compare the effects of market volatilities on OMX Stockholm and Opter AB 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 Opter AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and Opter AB.
Diversification Opportunities for OMX Stockholm and Opter AB
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between OMX and Opter is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and Opter AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Opter 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 Opter AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Opter AB has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and Opter AB go up and down completely randomly.
Pair Corralation between OMX Stockholm and Opter AB
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to under-perform the Opter AB. But the index apears to be less risky and, when comparing its historical volatility, OMX Stockholm Mid is 2.61 times less risky than Opter AB. The index trades about -0.25 of its potential returns per unit of risk. The Opter AB is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 11,050 in Opter AB on August 28, 2024 and sell it today you would earn a total of 1,000.00 from holding Opter AB or generate 9.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OMX Stockholm Mid vs. Opter AB
Performance |
| Timeline |
OMX Stockholm and Opter AB Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Opter AB
Pair trading matchups for Opter AB
Pair Trading with OMX Stockholm and Opter AB
The main advantage of trading using opposite OMX Stockholm and Opter AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, Opter AB 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 Opter AB will offset losses from the drop in Opter AB'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 |
| Opter AB vs. Sinch AB | Opter AB vs. Hexatronic Group AB | Opter AB vs. Samhllsbyggnadsbolaget i Norden | Opter AB vs. Storskogen Group 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |