Correlation Between Vitec Software and OMX Stockholm
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By analyzing existing cross correlation between Vitec Software Group and OMX Stockholm Mid, you can compare the effects of market volatilities on Vitec Software 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 Vitec Software with a short position of OMX Stockholm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vitec Software and OMX Stockholm.
Diversification Opportunities for Vitec Software and OMX Stockholm
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Vitec and OMX is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Vitec Software Group 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 Vitec Software 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 Vitec Software Group 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 Vitec Software i.e., Vitec Software and OMX Stockholm go up and down completely randomly.
Pair Corralation between Vitec Software and OMX Stockholm
Assuming the 90 days trading horizon Vitec Software Group is expected to generate 2.56 times more return on investment than OMX Stockholm. However, Vitec Software is 2.56 times more volatile than OMX Stockholm Mid. It trades about 0.08 of its potential returns per unit of risk. OMX Stockholm Mid is currently generating about 0.1 per unit of risk. If you would invest 53,200 in Vitec Software Group on October 24, 2024 and sell it today you would earn a total of 1,450 from holding Vitec Software Group or generate 2.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vitec Software Group vs. OMX Stockholm Mid
Performance |
| Timeline |
Vitec Software and OMX Stockholm Volatility Contrast
Predicted Return Density |
| Returns |
Vitec Software Group
Pair trading matchups for Vitec Software
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Pair Trading with Vitec Software and OMX Stockholm
The main advantage of trading using opposite Vitec Software and OMX Stockholm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vitec Software 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.| Vitec Software vs. Lifco AB | Vitec Software vs. Lagercrantz Group AB | Vitec Software vs. Addtech AB | Vitec Software vs. Instalco Intressenter AB |
| OMX Stockholm vs. Upsales Technology AB | OMX Stockholm vs. Lime Technologies AB | OMX Stockholm vs. Spago Nanomedical AB | OMX Stockholm vs. Systemair 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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