Correlation Between OMX Stockholm and Tangiamo Touch
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By analyzing existing cross correlation between OMX Stockholm Mid and Tangiamo Touch Technology, you can compare the effects of market volatilities on OMX Stockholm and Tangiamo Touch 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 Tangiamo Touch. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and Tangiamo Touch.
Diversification Opportunities for OMX Stockholm and Tangiamo Touch
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between OMX and Tangiamo is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and Tangiamo Touch Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tangiamo Touch Technology 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 Tangiamo Touch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tangiamo Touch Technology has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and Tangiamo Touch go up and down completely randomly.
Pair Corralation between OMX Stockholm and Tangiamo Touch
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to generate 0.05 times more return on investment than Tangiamo Touch. However, OMX Stockholm Mid is 18.45 times less risky than Tangiamo Touch. It trades about -0.07 of its potential returns per unit of risk. Tangiamo Touch Technology is currently generating about -0.28 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 | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
OMX Stockholm Mid vs. Tangiamo Touch Technology
Performance |
| Timeline |
OMX Stockholm and Tangiamo Touch Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Tangiamo Touch Technology
Pair trading matchups for Tangiamo Touch
Pair Trading with OMX Stockholm and Tangiamo Touch
The main advantage of trading using opposite OMX Stockholm and Tangiamo Touch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, Tangiamo Touch 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 Tangiamo Touch will offset losses from the drop in Tangiamo Touch'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 |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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