Correlation Between Columbus and Copenhagen Capital
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By analyzing existing cross correlation between Columbus AS and Copenhagen Capital AS, you can compare the effects of market volatilities on Columbus and Copenhagen Capital 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 Columbus with a short position of Copenhagen Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbus and Copenhagen Capital.
Diversification Opportunities for Columbus and Copenhagen Capital
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Columbus and Copenhagen is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Columbus AS and Copenhagen Capital AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Copenhagen Capital and Columbus 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 Columbus AS are associated (or correlated) with Copenhagen Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Copenhagen Capital has no effect on the direction of Columbus i.e., Columbus and Copenhagen Capital go up and down completely randomly.
Pair Corralation between Columbus and Copenhagen Capital
Assuming the 90 days trading horizon Columbus AS is expected to generate 1.27 times more return on investment than Copenhagen Capital. However, Columbus is 1.27 times more volatile than Copenhagen Capital AS. It trades about -0.05 of its potential returns per unit of risk. Copenhagen Capital AS is currently generating about -0.1 per unit of risk. If you would invest 1,080 in Columbus AS on August 25, 2024 and sell it today you would lose (20.00) from holding Columbus AS or give up 1.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Columbus AS vs. Copenhagen Capital AS
Performance |
| Timeline |
| Columbus AS |
| Copenhagen Capital |
Columbus and Copenhagen Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Columbus and Copenhagen Capital
The main advantage of trading using opposite Columbus and Copenhagen Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbus position performs unexpectedly, Copenhagen Capital 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 Copenhagen Capital will offset losses from the drop in Copenhagen Capital's long position.The idea behind Columbus AS and Copenhagen Capital AS pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Copenhagen Capital vs. SKAKO AS | Copenhagen Capital vs. Agat Ejendomme AS | Copenhagen Capital vs. Prime Office AS | Copenhagen Capital vs. Cemat AS |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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