Correlation Between OMX Stockholm and Desenio Group
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By analyzing existing cross correlation between OMX Stockholm Mid and Desenio Group AB, you can compare the effects of market volatilities on OMX Stockholm and Desenio Group 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 Desenio Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and Desenio Group.
Diversification Opportunities for OMX Stockholm and Desenio Group
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between OMX and Desenio is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and Desenio Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Desenio Group 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 Desenio Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Desenio Group AB has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and Desenio Group go up and down completely randomly.
Pair Corralation between OMX Stockholm and Desenio Group
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to generate 0.11 times more return on investment than Desenio Group. However, OMX Stockholm Mid is 9.07 times less risky than Desenio Group. It trades about 0.04 of its potential returns per unit of risk. Desenio Group AB is currently generating about -0.02 per unit of risk. If you would invest 141,361 in OMX Stockholm Mid on September 7, 2024 and sell it today you would earn a total of 25,275 from holding OMX Stockholm Mid or generate 17.88% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 99.79% |
Values | Daily Returns |
OMX Stockholm Mid vs. Desenio Group AB
Performance |
Timeline |
OMX Stockholm and Desenio Group Volatility Contrast
Predicted Return Density |
Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Desenio Group AB
Pair trading matchups for Desenio Group
Pair Trading with OMX Stockholm and Desenio Group
The main advantage of trading using opposite OMX Stockholm and Desenio Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, Desenio Group 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 Desenio Group will offset losses from the drop in Desenio Group's long position.OMX Stockholm vs. SaveLend Group AB | OMX Stockholm vs. Arctic Blue Beverages | OMX Stockholm vs. Sdiptech AB | OMX Stockholm vs. SaltX Technology Holding |
Desenio Group vs. Rugvista Group AB | Desenio Group vs. Cint Group AB | Desenio Group vs. BHG Group AB | Desenio Group vs. Lyko Group A |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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