Correlation Between OMX Stockholm and Bravida Holding
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By analyzing existing cross correlation between OMX Stockholm Mid and Bravida Holding AB, you can compare the effects of market volatilities on OMX Stockholm and Bravida 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 Bravida Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and Bravida Holding.
Diversification Opportunities for OMX Stockholm and Bravida Holding
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between OMX and Bravida is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and Bravida Holding AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bravida 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 Bravida Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bravida Holding AB has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and Bravida Holding go up and down completely randomly.
Pair Corralation between OMX Stockholm and Bravida Holding
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to generate 0.33 times more return on investment than Bravida Holding. However, OMX Stockholm Mid is 3.05 times less risky than Bravida Holding. It trades about 0.02 of its potential returns per unit of risk. Bravida Holding AB is currently generating about -0.05 per unit of risk. If you would invest 153,724 in OMX Stockholm Mid on February 7, 2024 and sell it today you would earn a total of 439.00 from holding OMX Stockholm Mid or generate 0.29% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
OMX Stockholm Mid vs. Bravida Holding AB
Performance |
Timeline |
OMX Stockholm and Bravida Holding Volatility Contrast
Predicted Return Density |
Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Bravida Holding AB
Pair trading matchups for Bravida Holding
Pair Trading with OMX Stockholm and Bravida Holding
The main advantage of trading using opposite OMX Stockholm and Bravida Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, Bravida 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 Bravida Holding will offset losses from the drop in Bravida Holding's long position.OMX Stockholm vs. Lifeclean International AB | OMX Stockholm vs. Media and Games | OMX Stockholm vs. Maven Wireless Sweden | OMX Stockholm vs. Invisio Communications AB |
Bravida Holding vs. Nolato AB | Bravida Holding vs. Indutrade AB | Bravida Holding vs. HEXPOL AB | Bravida Holding vs. Addtech 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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