Correlation Between OMX Stockholm and Sleep Cycle
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By analyzing existing cross correlation between OMX Stockholm Mid and Sleep Cycle AB, you can compare the effects of market volatilities on OMX Stockholm and Sleep Cycle 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 Sleep Cycle. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and Sleep Cycle.
Diversification Opportunities for OMX Stockholm and Sleep Cycle
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between OMX and Sleep is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and Sleep Cycle AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sleep Cycle 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 Sleep Cycle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sleep Cycle AB has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and Sleep Cycle go up and down completely randomly.
Pair Corralation between OMX Stockholm and Sleep Cycle
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to generate 0.44 times more return on investment than Sleep Cycle. However, OMX Stockholm Mid is 2.28 times less risky than Sleep Cycle. It trades about 0.05 of its potential returns per unit of risk. Sleep Cycle AB is currently generating about -0.48 per unit of risk. If you would invest 162,405 in OMX Stockholm Mid on September 24, 2024 and sell it today you would earn a total of 1,118 from holding OMX Stockholm Mid or generate 0.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OMX Stockholm Mid vs. Sleep Cycle AB
Performance |
| Timeline |
OMX Stockholm and Sleep Cycle Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Sleep Cycle AB
Pair trading matchups for Sleep Cycle
Pair Trading with OMX Stockholm and Sleep Cycle
The main advantage of trading using opposite OMX Stockholm and Sleep Cycle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, Sleep Cycle 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 Sleep Cycle will offset losses from the drop in Sleep Cycle'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 |
| Sleep Cycle vs. FormPipe Software AB | Sleep Cycle vs. Cint Group AB | Sleep Cycle vs. Lime Technologies AB | Sleep Cycle vs. Micro Systemation 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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