Correlation Between OMX Stockholm and Bonava AB
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By analyzing existing cross correlation between OMX Stockholm Mid and Bonava AB, you can compare the effects of market volatilities on OMX Stockholm and Bonava 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 Bonava AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and Bonava AB.
Diversification Opportunities for OMX Stockholm and Bonava AB
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between OMX and Bonava is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and Bonava AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bonava 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 Bonava AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bonava AB has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and Bonava AB go up and down completely randomly.
Pair Corralation between OMX Stockholm and Bonava AB
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to generate 0.38 times more return on investment than Bonava AB. However, OMX Stockholm Mid is 2.61 times less risky than Bonava AB. It trades about -0.01 of its potential returns per unit of risk. Bonava AB is currently generating about -0.03 per unit of risk. If you would invest 168,369 in OMX Stockholm Mid on September 5, 2024 and sell it today you would lose (2,017) from holding OMX Stockholm Mid or give up 1.2% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 99.22% |
Values | Daily Returns |
OMX Stockholm Mid vs. Bonava AB
Performance |
Timeline |
OMX Stockholm and Bonava AB Volatility Contrast
Predicted Return Density |
Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Bonava AB
Pair trading matchups for Bonava AB
Pair Trading with OMX Stockholm and Bonava AB
The main advantage of trading using opposite OMX Stockholm and Bonava AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, Bonava 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 Bonava AB will offset losses from the drop in Bonava AB's long position.OMX Stockholm vs. Nordic Asia Investment | OMX Stockholm vs. Invisio Communications AB | OMX Stockholm vs. White Pearl Technology | OMX Stockholm vs. Lohilo Foods 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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