Correlation Between OMX Stockholm and SaltX Technology
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By analyzing existing cross correlation between OMX Stockholm Mid and SaltX Technology Holding, you can compare the effects of market volatilities on OMX Stockholm and SaltX Technology 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 SaltX Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and SaltX Technology.
Diversification Opportunities for OMX Stockholm and SaltX Technology
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between OMX and SaltX is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and SaltX Technology Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SaltX Technology 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 SaltX Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SaltX Technology Holding has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and SaltX Technology go up and down completely randomly.
Pair Corralation between OMX Stockholm and SaltX Technology
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to under-perform the SaltX Technology. But the index apears to be less risky and, when comparing its historical volatility, OMX Stockholm Mid is 6.6 times less risky than SaltX Technology. The index trades about -0.2 of its potential returns per unit of risk. The SaltX Technology Holding is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 353.00 in SaltX Technology Holding on August 28, 2024 and sell it today you would earn a total of 20.00 from holding SaltX Technology Holding or generate 5.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OMX Stockholm Mid vs. SaltX Technology Holding
Performance |
| Timeline |
OMX Stockholm and SaltX Technology Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
SaltX Technology Holding
Pair trading matchups for SaltX Technology
Pair Trading with OMX Stockholm and SaltX Technology
The main advantage of trading using opposite OMX Stockholm and SaltX Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, SaltX Technology 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 SaltX Technology will offset losses from the drop in SaltX Technology'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 |
| SaltX Technology vs. GomSpace Group AB | SaltX Technology vs. Fingerprint Cards AB | SaltX Technology vs. Maha Energy AB | SaltX Technology vs. SolTech Energy Sweden |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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