Correlation Between OMX Stockholm and Xintela AB
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By analyzing existing cross correlation between OMX Stockholm Mid and Xintela AB, you can compare the effects of market volatilities on OMX Stockholm and Xintela 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 Xintela AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and Xintela AB.
Diversification Opportunities for OMX Stockholm and Xintela AB
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between OMX and Xintela is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and Xintela AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xintela 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 Xintela AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xintela AB has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and Xintela AB go up and down completely randomly.
Pair Corralation between OMX Stockholm and Xintela AB
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to generate 0.19 times more return on investment than Xintela AB. However, OMX Stockholm Mid is 5.32 times less risky than Xintela AB. It trades about -0.03 of its potential returns per unit of risk. Xintela AB is currently generating about -0.18 per unit of risk. If you would invest 165,881 in OMX Stockholm Mid on September 3, 2024 and sell it today you would lose (2,394) from holding OMX Stockholm Mid or give up 1.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OMX Stockholm Mid vs. Xintela AB
Performance |
| Timeline |
OMX Stockholm and Xintela AB Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Xintela AB
Pair trading matchups for Xintela AB
Pair Trading with OMX Stockholm and Xintela AB
The main advantage of trading using opposite OMX Stockholm and Xintela AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, Xintela 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 Xintela AB will offset losses from the drop in Xintela AB's long position.| OMX Stockholm vs. Investment AB Oresund | OMX Stockholm vs. MTI Investment SE | OMX Stockholm vs. Kinnevik Investment AB | OMX Stockholm vs. Axfood AB |
| Xintela AB vs. Simris Alg AB | Xintela AB vs. Immunovia publ AB | Xintela AB vs. Sedana Medical AB | Xintela AB vs. KABE Group 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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