Correlation Between OMX Stockholm and Svenska Handelsbanken
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By analyzing existing cross correlation between OMX Stockholm Mid and Svenska Handelsbanken AB, you can compare the effects of market volatilities on OMX Stockholm and Svenska Handelsbanken 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 Svenska Handelsbanken. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and Svenska Handelsbanken.
Diversification Opportunities for OMX Stockholm and Svenska Handelsbanken
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between OMX and Svenska is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and Svenska Handelsbanken AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Svenska Handelsbanken 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 Svenska Handelsbanken. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Svenska Handelsbanken has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and Svenska Handelsbanken go up and down completely randomly.
Pair Corralation between OMX Stockholm and Svenska Handelsbanken
Assuming the 90 days trading horizon OMX Stockholm is expected to generate 1.17 times less return on investment than Svenska Handelsbanken. But when comparing it to its historical volatility, OMX Stockholm Mid is 1.56 times less risky than Svenska Handelsbanken. It trades about 0.09 of its potential returns per unit of risk. Svenska Handelsbanken AB is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 10,992 in Svenska Handelsbanken AB on August 29, 2024 and sell it today you would earn a total of 3,358 from holding Svenska Handelsbanken AB or generate 30.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.68% |
| Values | Daily Returns |
OMX Stockholm Mid vs. Svenska Handelsbanken AB
Performance |
| Timeline |
OMX Stockholm and Svenska Handelsbanken Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Svenska Handelsbanken AB
Pair trading matchups for Svenska Handelsbanken
Pair Trading with OMX Stockholm and Svenska Handelsbanken
The main advantage of trading using opposite OMX Stockholm and Svenska Handelsbanken positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, Svenska Handelsbanken 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 Svenska Handelsbanken will offset losses from the drop in Svenska Handelsbanken'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 |
| Svenska Handelsbanken vs. Svenska Handelsbanken AB | Svenska Handelsbanken vs. Nordea Bank Abp | Svenska Handelsbanken vs. Atlas Copco AB | Svenska Handelsbanken vs. Skandinaviska Enskilda Banken |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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