Correlation Between OMX Stockholm and XSpray Pharma
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By analyzing existing cross correlation between OMX Stockholm Mid and XSpray Pharma AB, you can compare the effects of market volatilities on OMX Stockholm and XSpray Pharma 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 XSpray Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and XSpray Pharma.
Diversification Opportunities for OMX Stockholm and XSpray Pharma
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between OMX and XSpray is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and XSpray Pharma AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XSpray Pharma 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 XSpray Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XSpray Pharma AB has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and XSpray Pharma go up and down completely randomly.
Pair Corralation between OMX Stockholm and XSpray Pharma
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to generate 0.22 times more return on investment than XSpray Pharma. However, OMX Stockholm Mid is 4.65 times less risky than XSpray Pharma. It trades about -0.16 of its potential returns per unit of risk. XSpray Pharma AB is currently generating about -0.4 per unit of risk. If you would invest 166,426 in OMX Stockholm Mid on August 26, 2024 and sell it today you would lose (4,711) from holding OMX Stockholm Mid or give up 2.83% 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. XSpray Pharma AB
Performance |
| Timeline |
OMX Stockholm and XSpray Pharma Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
XSpray Pharma AB
Pair trading matchups for XSpray Pharma
Pair Trading with OMX Stockholm and XSpray Pharma
The main advantage of trading using opposite OMX Stockholm and XSpray Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, XSpray Pharma 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 XSpray Pharma will offset losses from the drop in XSpray Pharma's long position.| OMX Stockholm vs. Havsfrun Investment AB | OMX Stockholm vs. SaltX Technology Holding | OMX Stockholm vs. FormPipe Software AB | OMX Stockholm vs. Investment AB Oresund |
| XSpray Pharma vs. Xbrane Biopharma AB | XSpray Pharma vs. Hansa Biopharma AB | XSpray Pharma vs. Cantargia AB | XSpray Pharma vs. Vicore Pharma Holding |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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