Correlation Between Kosdaq Composite and OMX Stockholm
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By analyzing existing cross correlation between Kosdaq Composite Index and OMX Stockholm Mid, you can compare the effects of market volatilities on Kosdaq Composite and OMX Stockholm 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 Kosdaq Composite with a short position of OMX Stockholm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and OMX Stockholm.
Diversification Opportunities for Kosdaq Composite and OMX Stockholm
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kosdaq and OMX is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and OMX Stockholm Mid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OMX Stockholm Mid and Kosdaq Composite 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 Kosdaq Composite Index are associated (or correlated) with OMX Stockholm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OMX Stockholm Mid has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and OMX Stockholm go up and down completely randomly.
Pair Corralation between Kosdaq Composite and OMX Stockholm
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to under-perform the OMX Stockholm. In addition to that, Kosdaq Composite is 1.55 times more volatile than OMX Stockholm Mid. It trades about -0.17 of its total potential returns per unit of risk. OMX Stockholm Mid is currently generating about 0.01 per unit of volatility. If you would invest 152,520 in OMX Stockholm Mid on February 1, 2024 and sell it today you would earn a total of 149.00 from holding OMX Stockholm Mid or generate 0.1% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Kosdaq Composite Index vs. OMX Stockholm Mid
Performance |
Timeline |
Kosdaq Composite and OMX Stockholm Volatility Contrast
Predicted Return Density |
Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Pair Trading with Kosdaq Composite and OMX Stockholm
The main advantage of trading using opposite Kosdaq Composite and OMX Stockholm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, OMX Stockholm 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 OMX Stockholm will offset losses from the drop in OMX Stockholm's long position.Kosdaq Composite vs. Digital Power Communications | Kosdaq Composite vs. Sejong Telecom | Kosdaq Composite vs. Cots Technology Co | Kosdaq Composite vs. Seoul Electronics Telecom |
OMX Stockholm vs. Nilsson Special Vehicles | OMX Stockholm vs. High Coast Distillery | OMX Stockholm vs. Nexam Chemical Holding | OMX Stockholm vs. Spago Nanomedical 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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