Correlation Between Optomed PLC and SSAB AB
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By analyzing existing cross correlation between Optomed PLC and SSAB AB ser, you can compare the effects of market volatilities on Optomed PLC and SSAB 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 Optomed PLC with a short position of SSAB AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Optomed PLC and SSAB AB.
Diversification Opportunities for Optomed PLC and SSAB AB
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Optomed and SSAB is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Optomed PLC and SSAB AB ser in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSAB AB ser and Optomed PLC 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 Optomed PLC are associated (or correlated) with SSAB AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSAB AB ser has no effect on the direction of Optomed PLC i.e., Optomed PLC and SSAB AB go up and down completely randomly.
Pair Corralation between Optomed PLC and SSAB AB
Assuming the 90 days trading horizon Optomed PLC is expected to generate 1.7 times less return on investment than SSAB AB. In addition to that, Optomed PLC is 1.16 times more volatile than SSAB AB ser. It trades about 0.06 of its total potential returns per unit of risk. SSAB AB ser is currently generating about 0.13 per unit of volatility. If you would invest 385.00 in SSAB AB ser on October 23, 2024 and sell it today you would earn a total of 17.00 from holding SSAB AB ser or generate 4.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 93.75% |
| Values | Daily Returns |
Optomed PLC vs. SSAB AB ser
Performance |
| Timeline |
| Optomed PLC |
| SSAB AB ser |
Optomed PLC and SSAB AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Optomed PLC and SSAB AB
The main advantage of trading using opposite Optomed PLC and SSAB AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Optomed PLC position performs unexpectedly, SSAB 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 SSAB AB will offset losses from the drop in SSAB AB's long position.| Optomed PLC vs. Harvia Oyj | Optomed PLC vs. Revenio Group | Optomed PLC vs. Qt Group Oyj | Optomed PLC vs. Tecnotree Oyj |
| SSAB AB vs. SSAB AB ser | SSAB AB vs. Outokumpu Oyj | SSAB AB vs. Metsa Board Oyj | SSAB AB vs. Telia Company 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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