Correlation Between OMX Stockholm and Ziccum AB
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By analyzing existing cross correlation between OMX Stockholm Mid and Ziccum AB, you can compare the effects of market volatilities on OMX Stockholm and Ziccum 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 Ziccum AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and Ziccum AB.
Diversification Opportunities for OMX Stockholm and Ziccum AB
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between OMX and Ziccum is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and Ziccum AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ziccum 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 Ziccum AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ziccum AB has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and Ziccum AB go up and down completely randomly.
Pair Corralation between OMX Stockholm and Ziccum AB
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to generate 0.07 times more return on investment than Ziccum AB. However, OMX Stockholm Mid is 14.66 times less risky than Ziccum AB. It trades about -0.05 of its potential returns per unit of risk. Ziccum AB is currently generating about -0.28 per unit of risk. If you would invest 167,285 in OMX Stockholm Mid on September 12, 2024 and sell it today you would lose (1,637) from holding OMX Stockholm Mid or give up 0.98% 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. Ziccum AB
Performance |
| Timeline |
OMX Stockholm and Ziccum AB Volatility Contrast
Predicted Return Density |
| Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Ziccum AB
Pair trading matchups for Ziccum AB
Pair Trading with OMX Stockholm and Ziccum AB
The main advantage of trading using opposite OMX Stockholm and Ziccum AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, Ziccum 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 Ziccum AB will offset losses from the drop in Ziccum AB's long position.| OMX Stockholm vs. Zenicor Medical Systems | OMX Stockholm vs. Lundin Mining | OMX Stockholm vs. Neola Medical AB | OMX Stockholm vs. Upsales Technology 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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