Correlation Between OMX Stockholm and Sivers IMA
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By analyzing existing cross correlation between OMX Stockholm Mid and Sivers IMA Holding, you can compare the effects of market volatilities on OMX Stockholm and Sivers IMA 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 Sivers IMA. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and Sivers IMA.
Diversification Opportunities for OMX Stockholm and Sivers IMA
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between OMX and Sivers is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and Sivers IMA Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sivers IMA 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 Sivers IMA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sivers IMA Holding has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and Sivers IMA go up and down completely randomly.
Pair Corralation between OMX Stockholm and Sivers IMA
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to generate 0.19 times more return on investment than Sivers IMA. However, OMX Stockholm Mid is 5.2 times less risky than Sivers IMA. It trades about 0.05 of its potential returns per unit of risk. Sivers IMA Holding is currently generating about -0.02 per unit of risk. If you would invest 135,365 in OMX Stockholm Mid on August 28, 2024 and sell it today you would earn a total of 27,040 from holding OMX Stockholm Mid or generate 19.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
OMX Stockholm Mid vs. Sivers IMA Holding
Performance |
| Timeline |
OMX Stockholm and Sivers IMA Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Sivers IMA Holding
Pair trading matchups for Sivers IMA
Pair Trading with OMX Stockholm and Sivers IMA
The main advantage of trading using opposite OMX Stockholm and Sivers IMA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, Sivers IMA 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 Sivers IMA will offset losses from the drop in Sivers IMA'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 |
| Sivers IMA vs. Hexatronic Group AB | Sivers IMA vs. Sinch AB | Sivers IMA vs. Embracer Group AB | Sivers IMA 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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