Correlation Between OMX Stockholm and Kentima Holding
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By analyzing existing cross correlation between OMX Stockholm Mid and Kentima Holding publ, you can compare the effects of market volatilities on OMX Stockholm and Kentima 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 Kentima Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and Kentima Holding.
Diversification Opportunities for OMX Stockholm and Kentima Holding
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between OMX and Kentima is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and Kentima Holding publ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kentima Holding publ 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 Kentima Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kentima Holding publ has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and Kentima Holding go up and down completely randomly.
Pair Corralation between OMX Stockholm and Kentima Holding
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to under-perform the Kentima Holding. But the index apears to be less risky and, when comparing its historical volatility, OMX Stockholm Mid is 6.52 times less risky than Kentima Holding. The index trades about -0.1 of its potential returns per unit of risk. The Kentima Holding publ is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 169.00 in Kentima Holding publ on January 29, 2024 and sell it today you would earn a total of 13.00 from holding Kentima Holding publ or generate 7.69% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
OMX Stockholm Mid vs. Kentima Holding publ
Performance |
Timeline |
OMX Stockholm and Kentima Holding Volatility Contrast
Predicted Return Density |
Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Kentima Holding publ
Pair trading matchups for Kentima Holding
Pair Trading with OMX Stockholm and Kentima Holding
The main advantage of trading using opposite OMX Stockholm and Kentima Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, Kentima 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 Kentima Holding will offset losses from the drop in Kentima Holding's long position.OMX Stockholm vs. Sedana Medical AB | OMX Stockholm vs. Corline Biomedical AB | OMX Stockholm vs. Svenska Handelsbanken AB | OMX Stockholm vs. Neola Medical AB |
Kentima Holding vs. Lagercrantz Group AB | Kentima Holding vs. Vitec Software Group | Kentima Holding vs. Addnode Group AB | Kentima Holding vs. Inwido 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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