Correlation Between OMX Stockholm and Simris Alg
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By analyzing existing cross correlation between OMX Stockholm Mid and Simris Alg AB, you can compare the effects of market volatilities on OMX Stockholm and Simris Alg 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 Simris Alg. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and Simris Alg.
Diversification Opportunities for OMX Stockholm and Simris Alg
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between OMX and Simris is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and Simris Alg AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simris Alg 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 Simris Alg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simris Alg AB has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and Simris Alg go up and down completely randomly.
Pair Corralation between OMX Stockholm and Simris Alg
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to generate 0.09 times more return on investment than Simris Alg. However, OMX Stockholm Mid is 11.58 times less risky than Simris Alg. It trades about -0.06 of its potential returns per unit of risk. Simris Alg AB is currently generating about -0.04 per unit of risk. If you would invest 165,403 in OMX Stockholm Mid on September 3, 2024 and sell it today you would lose (1,916) from holding OMX Stockholm Mid or give up 1.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OMX Stockholm Mid vs. Simris Alg AB
Performance |
| Timeline |
OMX Stockholm and Simris Alg Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Simris Alg AB
Pair trading matchups for Simris Alg
Pair Trading with OMX Stockholm and Simris Alg
The main advantage of trading using opposite OMX Stockholm and Simris Alg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, Simris Alg 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 Simris Alg will offset losses from the drop in Simris Alg's long position.| OMX Stockholm vs. Investment AB Oresund | OMX Stockholm vs. MTI Investment SE | OMX Stockholm vs. Kinnevik Investment AB | OMX Stockholm vs. Axfood AB |
| Simris Alg vs. SenzaGen AB | Simris Alg vs. AAK AB | Simris Alg vs. Scibase AB | Simris Alg vs. Scandinavian Enviro Systems |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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