Correlation Between OMX Stockholm and Sileon AB
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By analyzing existing cross correlation between OMX Stockholm Mid and Sileon AB, you can compare the effects of market volatilities on OMX Stockholm and Sileon AB 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 Sileon AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and Sileon AB.
Diversification Opportunities for OMX Stockholm and Sileon AB
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between OMX and Sileon is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and Sileon AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sileon 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 Sileon AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sileon AB has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and Sileon AB go up and down completely randomly.
Pair Corralation between OMX Stockholm and Sileon AB
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to generate 0.14 times more return on investment than Sileon AB. However, OMX Stockholm Mid is 7.21 times less risky than Sileon AB. It trades about 0.05 of its potential returns per unit of risk. Sileon AB is currently generating about -0.07 per unit of risk. If you would invest 133,407 in OMX Stockholm Mid on September 24, 2024 and sell it today you would earn a total of 30,116 from holding OMX Stockholm Mid or generate 22.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
OMX Stockholm Mid vs. Sileon AB
Performance |
| Timeline |
OMX Stockholm and Sileon AB Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Sileon AB
Pair trading matchups for Sileon AB
Pair Trading with OMX Stockholm and Sileon AB
The main advantage of trading using opposite OMX Stockholm and Sileon AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, Sileon AB 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 Sileon AB will offset losses from the drop in Sileon AB's long position.| OMX Stockholm vs. Media and Games | OMX Stockholm vs. Lime Technologies AB | OMX Stockholm vs. Maven Wireless Sweden | OMX Stockholm vs. USWE Sports AB |
| Sileon AB vs. Enersize Oy | Sileon AB vs. Divio Technologies AB | Sileon AB vs. Mekonomen AB | Sileon AB vs. Embellence 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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