Correlation Between OMX Stockholm and Raketech Group
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By analyzing existing cross correlation between OMX Stockholm Mid and Raketech Group Holding, you can compare the effects of market volatilities on OMX Stockholm and Raketech Group 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 Raketech Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and Raketech Group.
Diversification Opportunities for OMX Stockholm and Raketech Group
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between OMX and Raketech is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and Raketech Group Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Raketech Group Holding 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 Raketech Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Raketech Group Holding has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and Raketech Group go up and down completely randomly.
Pair Corralation between OMX Stockholm and Raketech Group
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to generate 0.11 times more return on investment than Raketech Group. However, OMX Stockholm Mid is 8.79 times less risky than Raketech Group. It trades about -0.07 of its potential returns per unit of risk. Raketech Group Holding is currently generating about -0.25 per unit of risk. If you would invest 165,549 in OMX Stockholm Mid on September 1, 2024 and sell it today you would lose (2,062) from holding OMX Stockholm Mid or give up 1.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
OMX Stockholm Mid vs. Raketech Group Holding
Performance |
| Timeline |
OMX Stockholm and Raketech Group Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Raketech Group Holding
Pair trading matchups for Raketech Group
Pair Trading with OMX Stockholm and Raketech Group
The main advantage of trading using opposite OMX Stockholm and Raketech Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, Raketech Group 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 Raketech Group will offset losses from the drop in Raketech Group'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 |
| Raketech Group vs. Adventure Box Technology | Raketech Group vs. Enorama Pharma AB | Raketech Group vs. KABE Group AB | Raketech Group vs. IAR Systems Group |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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