Correlation Between OMX Stockholm and Polygiene
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By analyzing existing cross correlation between OMX Stockholm Mid and Polygiene AB, you can compare the effects of market volatilities on OMX Stockholm and Polygiene 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 Polygiene. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and Polygiene.
Diversification Opportunities for OMX Stockholm and Polygiene
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between OMX and Polygiene is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and Polygiene AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polygiene 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 Polygiene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polygiene AB has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and Polygiene go up and down completely randomly.
Pair Corralation between OMX Stockholm and Polygiene
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to under-perform the Polygiene. But the index apears to be less risky and, when comparing its historical volatility, OMX Stockholm Mid is 6.39 times less risky than Polygiene. The index trades about -0.2 of its potential returns per unit of risk. The Polygiene AB is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,080 in Polygiene AB on August 27, 2024 and sell it today you would earn a total of 220.00 from holding Polygiene AB or generate 20.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OMX Stockholm Mid vs. Polygiene AB
Performance |
| Timeline |
OMX Stockholm and Polygiene Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Polygiene AB
Pair trading matchups for Polygiene
Pair Trading with OMX Stockholm and Polygiene
The main advantage of trading using opposite OMX Stockholm and Polygiene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, Polygiene 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 Polygiene will offset losses from the drop in Polygiene's long position.| OMX Stockholm vs. Investment AB Oresund | OMX Stockholm vs. Nordic Asia Investment | OMX Stockholm vs. Havsfrun Investment AB | OMX Stockholm vs. Raketech Group Holding |
| Polygiene vs. SaltX Technology Holding | Polygiene vs. Nexam Chemical Holding | Polygiene vs. AAC Clyde Space | Polygiene vs. KABE 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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