Correlation Between OMX Stockholm and Neola Medical
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By analyzing existing cross correlation between OMX Stockholm Mid and Neola Medical AB, you can compare the effects of market volatilities on OMX Stockholm and Neola Medical 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 Neola Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and Neola Medical.
Diversification Opportunities for OMX Stockholm and Neola Medical
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between OMX and Neola is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and Neola Medical AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neola Medical 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 Neola Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neola Medical AB has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and Neola Medical go up and down completely randomly.
Pair Corralation between OMX Stockholm and Neola Medical
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to under-perform the Neola Medical. But the index apears to be less risky and, when comparing its historical volatility, OMX Stockholm Mid is 7.51 times less risky than Neola Medical. The index trades about -0.04 of its potential returns per unit of risk. The Neola Medical AB is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 202.00 in Neola Medical AB on September 11, 2024 and sell it today you would earn a total of 48.00 from holding Neola Medical AB or generate 23.76% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
OMX Stockholm Mid vs. Neola Medical AB
Performance |
Timeline |
OMX Stockholm and Neola Medical Volatility Contrast
Predicted Return Density |
Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Neola Medical AB
Pair trading matchups for Neola Medical
Pair Trading with OMX Stockholm and Neola Medical
The main advantage of trading using opposite OMX Stockholm and Neola Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, Neola Medical 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 Neola Medical will offset losses from the drop in Neola Medical's long position.OMX Stockholm vs. Corline Biomedical AB | OMX Stockholm vs. Indutrade AB | OMX Stockholm vs. SaltX Technology Holding | OMX Stockholm vs. Beowulf Mining PLC |
Neola Medical vs. Swedbank AB | Neola Medical vs. Episurf Medical AB | Neola Medical vs. Viaplay Group AB | Neola Medical vs. G5 Entertainment publ |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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