Correlation Between OMX Stockholm and Train Alliance
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By analyzing existing cross correlation between OMX Stockholm Mid and Train Alliance Sweden, you can compare the effects of market volatilities on OMX Stockholm and Train Alliance 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 Train Alliance. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and Train Alliance.
Diversification Opportunities for OMX Stockholm and Train Alliance
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between OMX and Train is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and Train Alliance Sweden in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Train Alliance Sweden 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 Train Alliance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Train Alliance Sweden has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and Train Alliance go up and down completely randomly.
Pair Corralation between OMX Stockholm and Train Alliance
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to generate 0.67 times more return on investment than Train Alliance. However, OMX Stockholm Mid is 1.5 times less risky than Train Alliance. It trades about -0.19 of its potential returns per unit of risk. Train Alliance Sweden is currently generating about -0.38 per unit of risk. If you would invest 167,920 in OMX Stockholm Mid on August 29, 2024 and sell it today you would lose (5,923) from holding OMX Stockholm Mid or give up 3.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OMX Stockholm Mid vs. Train Alliance Sweden
Performance |
| Timeline |
OMX Stockholm and Train Alliance Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Train Alliance Sweden
Pair trading matchups for Train Alliance
Pair Trading with OMX Stockholm and Train Alliance
The main advantage of trading using opposite OMX Stockholm and Train Alliance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, Train Alliance 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 Train Alliance will offset losses from the drop in Train Alliance'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 |
| Train Alliance vs. Bergman Beving AB | Train Alliance vs. FM Mattsson Mora | Train Alliance vs. Systemair AB | Train Alliance vs. Rejlers 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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