Correlation Between OMX Stockholm and Exsitec Holding
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By analyzing existing cross correlation between OMX Stockholm Mid and Exsitec Holding AB, you can compare the effects of market volatilities on OMX Stockholm and Exsitec Holding 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 Exsitec Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and Exsitec Holding.
Diversification Opportunities for OMX Stockholm and Exsitec Holding
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between OMX and Exsitec is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and Exsitec Holding AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exsitec Holding 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 Exsitec Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exsitec Holding AB has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and Exsitec Holding go up and down completely randomly.
Pair Corralation between OMX Stockholm and Exsitec Holding
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to generate 0.31 times more return on investment than Exsitec Holding. However, OMX Stockholm Mid is 3.27 times less risky than Exsitec Holding. It trades about -0.08 of its potential returns per unit of risk. Exsitec Holding AB is currently generating about -0.18 per unit of risk. If you would invest 167,249 in OMX Stockholm Mid on October 12, 2024 and sell it today you would lose (5,585) from holding OMX Stockholm Mid or give up 3.34% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
OMX Stockholm Mid vs. Exsitec Holding AB
Performance |
Timeline |
OMX Stockholm and Exsitec Holding Volatility Contrast
Predicted Return Density |
Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Exsitec Holding AB
Pair trading matchups for Exsitec Holding
Pair Trading with OMX Stockholm and Exsitec Holding
The main advantage of trading using opposite OMX Stockholm and Exsitec Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, Exsitec Holding 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 Exsitec Holding will offset losses from the drop in Exsitec Holding's long position.OMX Stockholm vs. COOR Service Management | OMX Stockholm vs. Invisio Communications AB | OMX Stockholm vs. Havsfrun Investment AB | OMX Stockholm vs. Vitec Software Group |
Exsitec Holding vs. CAG Group AB | Exsitec Holding vs. Know IT AB | Exsitec Holding vs. Enea AB | Exsitec Holding vs. NCAB 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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