Correlation Between OMX Stockholm and Peab AB
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By analyzing existing cross correlation between OMX Stockholm Mid and Peab AB, you can compare the effects of market volatilities on OMX Stockholm and Peab 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 Peab AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and Peab AB.
Diversification Opportunities for OMX Stockholm and Peab AB
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between OMX and Peab is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and Peab AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peab 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 Peab AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peab AB has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and Peab AB go up and down completely randomly.
Pair Corralation between OMX Stockholm and Peab AB
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to under-perform the Peab AB. But the index apears to be less risky and, when comparing its historical volatility, OMX Stockholm Mid is 1.68 times less risky than Peab AB. The index trades about -0.07 of its potential returns per unit of risk. The Peab AB is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 8,110 in Peab AB on September 1, 2024 and sell it today you would lose (95.00) from holding Peab AB or give up 1.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
OMX Stockholm Mid vs. Peab AB
Performance |
| Timeline |
OMX Stockholm and Peab AB Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Peab AB
Pair trading matchups for Peab AB
Pair Trading with OMX Stockholm and Peab AB
The main advantage of trading using opposite OMX Stockholm and Peab AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, Peab 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 Peab AB will offset losses from the drop in Peab AB'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 |
| Peab AB vs. Lundin Mining | Peab AB vs. Media and Games | Peab AB vs. Lohilo Foods AB | Peab AB vs. JLT Mobile Computers |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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