Correlation Between OMX Stockholm and Xvivo Perfusion
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By analyzing existing cross correlation between OMX Stockholm Mid and Xvivo Perfusion AB, you can compare the effects of market volatilities on OMX Stockholm and Xvivo Perfusion 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 Xvivo Perfusion. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and Xvivo Perfusion.
Diversification Opportunities for OMX Stockholm and Xvivo Perfusion
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between OMX and Xvivo is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and Xvivo Perfusion AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xvivo Perfusion 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 Xvivo Perfusion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xvivo Perfusion AB has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and Xvivo Perfusion go up and down completely randomly.
Pair Corralation between OMX Stockholm and Xvivo Perfusion
Assuming the 90 days trading horizon OMX Stockholm is expected to generate 4.71 times less return on investment than Xvivo Perfusion. But when comparing it to its historical volatility, OMX Stockholm Mid is 3.28 times less risky than Xvivo Perfusion. It trades about 0.05 of its potential returns per unit of risk. Xvivo Perfusion AB is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 18,680 in Xvivo Perfusion AB on August 29, 2024 and sell it today you would earn a total of 28,070 from holding Xvivo Perfusion AB or generate 150.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
OMX Stockholm Mid vs. Xvivo Perfusion AB
Performance |
| Timeline |
OMX Stockholm and Xvivo Perfusion Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Xvivo Perfusion AB
Pair trading matchups for Xvivo Perfusion
Pair Trading with OMX Stockholm and Xvivo Perfusion
The main advantage of trading using opposite OMX Stockholm and Xvivo Perfusion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, Xvivo Perfusion 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 Xvivo Perfusion will offset losses from the drop in Xvivo Perfusion'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 |
| Xvivo Perfusion vs. Vitrolife AB | Xvivo Perfusion vs. BioArctic AB | Xvivo Perfusion vs. CellaVision AB | Xvivo Perfusion vs. Invisio Communications 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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