Correlation Between OMX Stockholm and Swedish Orphan
Specify exactly 2 symbols:
By analyzing existing cross correlation between OMX Stockholm Mid and Swedish Orphan Biovitrum, you can compare the effects of market volatilities on OMX Stockholm and Swedish Orphan 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 Swedish Orphan. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and Swedish Orphan.
Diversification Opportunities for OMX Stockholm and Swedish Orphan
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between OMX and Swedish is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and Swedish Orphan Biovitrum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swedish Orphan Biovitrum 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 Swedish Orphan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swedish Orphan Biovitrum has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and Swedish Orphan go up and down completely randomly.
Pair Corralation between OMX Stockholm and Swedish Orphan
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to generate 0.3 times more return on investment than Swedish Orphan. However, OMX Stockholm Mid is 3.36 times less risky than Swedish Orphan. It trades about -0.07 of its potential returns per unit of risk. Swedish Orphan Biovitrum is currently generating about -0.14 per unit of risk. If you would invest 165,549 in OMX Stockholm Mid on September 1, 2024 and sell it today you would lose (2,062) from holding OMX Stockholm Mid or give up 1.25% 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. Swedish Orphan Biovitrum
Performance |
| Timeline |
OMX Stockholm and Swedish Orphan Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Swedish Orphan Biovitrum
Pair trading matchups for Swedish Orphan
Pair Trading with OMX Stockholm and Swedish Orphan
The main advantage of trading using opposite OMX Stockholm and Swedish Orphan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, Swedish Orphan 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 Swedish Orphan will offset losses from the drop in Swedish Orphan's long position.| OMX Stockholm vs. Beowulf Mining PLC | OMX Stockholm vs. Swedbank AB | OMX Stockholm vs. Arion banki hf | OMX Stockholm vs. TradeDoubler AB |
| Swedish Orphan vs. Kancera AB | Swedish Orphan vs. Cyxone AB | Swedish Orphan vs. Lidds AB | Swedish Orphan vs. Cantargia 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |