Correlation Between OMX Stockholm and ScandBook Holding
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By analyzing existing cross correlation between OMX Stockholm Mid and ScandBook Holding AB, you can compare the effects of market volatilities on OMX Stockholm and ScandBook Holding 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 ScandBook Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and ScandBook Holding.
Diversification Opportunities for OMX Stockholm and ScandBook Holding
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between OMX and ScandBook is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and ScandBook Holding AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ScandBook 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 ScandBook Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ScandBook Holding has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and ScandBook Holding go up and down completely randomly.
Pair Corralation between OMX Stockholm and ScandBook Holding
Assuming the 90 days trading horizon OMX Stockholm is expected to generate 1.21 times less return on investment than ScandBook Holding. But when comparing it to its historical volatility, OMX Stockholm Mid is 2.53 times less risky than ScandBook Holding. It trades about 0.05 of its potential returns per unit of risk. ScandBook Holding AB is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,905 in ScandBook Holding AB on August 30, 2024 and sell it today you would earn a total of 455.00 from holding ScandBook Holding AB or generate 15.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
OMX Stockholm Mid vs. ScandBook Holding AB
Performance |
| Timeline |
OMX Stockholm and ScandBook Holding Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
ScandBook Holding AB
Pair trading matchups for ScandBook Holding
Pair Trading with OMX Stockholm and ScandBook Holding
The main advantage of trading using opposite OMX Stockholm and ScandBook Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, ScandBook Holding 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 ScandBook Holding will offset losses from the drop in ScandBook Holding's long position.| OMX Stockholm vs. Svenska Handelsbanken AB | OMX Stockholm vs. FormPipe Software AB | OMX Stockholm vs. Skandinaviska Enskilda Banken | OMX Stockholm vs. Online Brands Nordic |
| ScandBook Holding vs. Zinzino AB Series | ScandBook Holding vs. Firefly AB | ScandBook Holding vs. Generic Sweden publ | ScandBook Holding vs. Nepa 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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