Correlation Between OMX Stockholm and Stille AB
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By analyzing existing cross correlation between OMX Stockholm Mid and Stille AB, you can compare the effects of market volatilities on OMX Stockholm and Stille 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 Stille AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and Stille AB.
Diversification Opportunities for OMX Stockholm and Stille AB
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between OMX and Stille is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and Stille AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stille 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 Stille AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stille AB has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and Stille AB go up and down completely randomly.
Pair Corralation between OMX Stockholm and Stille AB
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to under-perform the Stille AB. But the index apears to be less risky and, when comparing its historical volatility, OMX Stockholm Mid is 2.16 times less risky than Stille AB. The index trades about -0.25 of its potential returns per unit of risk. The Stille AB is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 21,300 in Stille AB on August 29, 2024 and sell it today you would lose (100.00) from holding Stille AB or give up 0.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OMX Stockholm Mid vs. Stille AB
Performance |
| Timeline |
OMX Stockholm and Stille AB Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Stille AB
Pair trading matchups for Stille AB
Pair Trading with OMX Stockholm and Stille AB
The main advantage of trading using opposite OMX Stockholm and Stille AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, Stille 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 Stille AB will offset losses from the drop in Stille AB's long position.| OMX Stockholm vs. Svenska Handelsbanken AB | OMX Stockholm vs. FormPipe Software AB | OMX Stockholm vs. Skandinaviska Enskilda Banken | OMX Stockholm vs. Online Brands Nordic |
| Stille AB vs. C Rad AB | Stille AB vs. CellaVision AB | Stille AB vs. Boule Diagnostics AB | Stille AB vs. Genovis 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 CEOs Directory module to screen CEOs from public companies around the world.
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