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 is expected to generate 22.42 times less return on investment than Desenio Group. But when comparing it to its historical volatility, OMX Stockholm Mid is 16.68 times less risky than Desenio Group. It trades about 0.06 of its potential returns per unit of risk. Desenio Group AB is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 30.00 in Desenio Group AB on September 6, 2024 and sell it today you would earn a total of 2.00 from holding Desenio Group AB or generate 6.67% 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. 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. Vitec Software Group | OMX Stockholm vs. TF Bank AB | OMX Stockholm vs. New Nordic Healthbrands | OMX Stockholm vs. Catena Media plc |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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