Correlation Between Train Alliance and OMX Stockholm
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By analyzing existing cross correlation between Train Alliance Sweden and OMX Stockholm Mid, you can compare the effects of market volatilities on Train Alliance 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 Train Alliance with a short position of OMX Stockholm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Train Alliance and OMX Stockholm.
Diversification Opportunities for Train Alliance and OMX Stockholm
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Train and OMX is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Train Alliance Sweden 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 Train Alliance 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 Train Alliance Sweden 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 Train Alliance i.e., Train Alliance and OMX Stockholm go up and down completely randomly.
Pair Corralation between Train Alliance and OMX Stockholm
Assuming the 90 days trading horizon Train Alliance Sweden is expected to generate 2.84 times more return on investment than OMX Stockholm. However, Train Alliance is 2.84 times more volatile than OMX Stockholm Mid. It trades about 0.03 of its potential returns per unit of risk. OMX Stockholm Mid is currently generating about 0.04 per unit of risk. If you would invest 1,810 in Train Alliance Sweden on October 7, 2024 and sell it today you would earn a total of 15.00 from holding Train Alliance Sweden or generate 0.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Train Alliance Sweden vs. OMX Stockholm Mid
Performance |
| Timeline |
Train Alliance and OMX Stockholm Volatility Contrast
Predicted Return Density |
| Returns |
Train Alliance Sweden
Pair trading matchups for Train Alliance
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Pair Trading with Train Alliance and OMX Stockholm
The main advantage of trading using opposite Train Alliance and OMX Stockholm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Train Alliance 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.| Train Alliance vs. Instalco Intressenter AB | Train Alliance vs. Lifco AB | Train Alliance vs. Vitec Software Group | Train Alliance vs. Addtech AB |
| OMX Stockholm vs. TradeDoubler AB | OMX Stockholm vs. Bio Works Technologies AB | OMX Stockholm vs. Indutrade AB | OMX Stockholm vs. Vitec Software Group |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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