Correlation Between OMX Stockholm and Teqnion AB
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By analyzing existing cross correlation between OMX Stockholm Mid and Teqnion AB, you can compare the effects of market volatilities on OMX Stockholm and Teqnion AB 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 Teqnion AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and Teqnion AB.
Diversification Opportunities for OMX Stockholm and Teqnion AB
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between OMX and Teqnion is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and Teqnion AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teqnion 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 Teqnion AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teqnion AB has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and Teqnion AB go up and down completely randomly.
Pair Corralation between OMX Stockholm and Teqnion AB
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to generate 0.35 times more return on investment than Teqnion AB. However, OMX Stockholm Mid is 2.85 times less risky than Teqnion AB. It trades about -0.04 of its potential returns per unit of risk. Teqnion AB is currently generating about -0.21 per unit of risk. If you would invest 152,520 in OMX Stockholm Mid on February 2, 2024 and sell it today you would lose (1,169) from holding OMX Stockholm Mid or give up 0.77% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 95.65% |
Values | Daily Returns |
OMX Stockholm Mid vs. Teqnion AB
Performance |
Timeline |
OMX Stockholm and Teqnion AB Volatility Contrast
Predicted Return Density |
Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Teqnion AB
Pair trading matchups for Teqnion AB
Pair Trading with OMX Stockholm and Teqnion AB
The main advantage of trading using opposite OMX Stockholm and Teqnion AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, Teqnion AB 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 Teqnion AB will offset losses from the drop in Teqnion AB's long position.OMX Stockholm vs. Axfood AB | OMX Stockholm vs. Active Biotech AB | OMX Stockholm vs. Upsales Technology AB | OMX Stockholm vs. Investment AB Oresund |
Teqnion AB vs. Indutrade AB | Teqnion AB vs. Lifco AB | Teqnion AB vs. Lagercrantz Group AB | Teqnion AB vs. AddLife 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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