Correlation Between Raketech Group and OMX Stockholm
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By analyzing existing cross correlation between Raketech Group Holding and OMX Stockholm Mid, you can compare the effects of market volatilities on Raketech Group and OMX Stockholm 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 Raketech Group with a short position of OMX Stockholm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Raketech Group and OMX Stockholm.
Diversification Opportunities for Raketech Group and OMX Stockholm
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Raketech and OMX is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Raketech Group Holding and OMX Stockholm Mid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OMX Stockholm Mid and Raketech Group 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 Raketech Group Holding are associated (or correlated) with OMX Stockholm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OMX Stockholm Mid has no effect on the direction of Raketech Group i.e., Raketech Group and OMX Stockholm go up and down completely randomly.
Pair Corralation between Raketech Group and OMX Stockholm
Assuming the 90 days trading horizon Raketech Group Holding is expected to under-perform the OMX Stockholm. In addition to that, Raketech Group is 8.62 times more volatile than OMX Stockholm Mid. It trades about -0.23 of its total potential returns per unit of risk. OMX Stockholm Mid is currently generating about -0.19 per unit of volatility. If you would invest 167,694 in OMX Stockholm Mid on August 30, 2024 and sell it today you would lose (5,697) from holding OMX Stockholm Mid or give up 3.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Raketech Group Holding vs. OMX Stockholm Mid
Performance |
| Timeline |
Raketech Group and OMX Stockholm Volatility Contrast
Predicted Return Density |
| Returns |
Raketech Group Holding
Pair trading matchups for Raketech Group
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Pair Trading with Raketech Group and OMX Stockholm
The main advantage of trading using opposite Raketech Group and OMX Stockholm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Raketech Group position performs unexpectedly, OMX Stockholm 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 OMX Stockholm will offset losses from the drop in OMX Stockholm's long position.| Raketech Group vs. Catena Media plc | Raketech Group vs. Better Collective | Raketech Group vs. Betsson AB | Raketech Group vs. Kambi Group PLC |
| OMX Stockholm vs. USWE Sports AB | OMX Stockholm vs. Leading Edge Materials | OMX Stockholm vs. FormPipe Software AB | OMX Stockholm vs. Catena Media plc |
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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