Correlation Between OMX Stockholm and Corem Property
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By analyzing existing cross correlation between OMX Stockholm Mid and Corem Property Group, you can compare the effects of market volatilities on OMX Stockholm and Corem Property 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 Corem Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and Corem Property.
Diversification Opportunities for OMX Stockholm and Corem Property
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between OMX and Corem is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and Corem Property Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corem Property Group 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 Corem Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corem Property Group has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and Corem Property go up and down completely randomly.
Pair Corralation between OMX Stockholm and Corem Property
Assuming the 90 days trading horizon OMX Stockholm is expected to generate 1.0 times less return on investment than Corem Property. But when comparing it to its historical volatility, OMX Stockholm Mid is 1.84 times less risky than Corem Property. It trades about 0.04 of its potential returns per unit of risk. Corem Property Group is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 26,689 in Corem Property Group on September 6, 2024 and sell it today you would earn a total of 361.00 from holding Corem Property Group or generate 1.35% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 98.46% |
Values | Daily Returns |
OMX Stockholm Mid vs. Corem Property Group
Performance |
Timeline |
OMX Stockholm and Corem Property Volatility Contrast
Predicted Return Density |
Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Corem Property Group
Pair trading matchups for Corem Property
Pair Trading with OMX Stockholm and Corem Property
The main advantage of trading using opposite OMX Stockholm and Corem Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, Corem Property 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 Corem Property will offset losses from the drop in Corem Property's long position.OMX Stockholm vs. Vitec Software Group | OMX Stockholm vs. TF Bank AB | OMX Stockholm vs. New Nordic Healthbrands | OMX Stockholm vs. Catena Media plc |
Corem Property vs. AB Sagax | Corem Property vs. Volati AB | Corem Property vs. Dios Fastigheter AB | Corem Property vs. NP3 Fastigheter 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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