Correlation Between Dataproces Group and OMX Copenhagen

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Can any of the company-specific risk be diversified away by investing in both Dataproces Group and OMX Copenhagen at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Dataproces Group and OMX Copenhagen into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Dataproces Group AS and OMX Copenhagen All, you can compare the effects of market volatilities on Dataproces Group and OMX Copenhagen 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 Dataproces Group with a short position of OMX Copenhagen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dataproces Group and OMX Copenhagen.

Diversification Opportunities for Dataproces Group and OMX Copenhagen

-0.75

Correlation Coefficient

Dataproces Group

OMX Copenhagen

Pay attention - limited upside

The 3 months correlation between Dataproces and OMX is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Dataproces Group AS and OMX Copenhagen All in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OMX Copenhagen All and Dataproces Group 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 Dataproces Group AS are associated (or correlated) with OMX Copenhagen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OMX Copenhagen All has no effect on the direction of Dataproces Group i.e., Dataproces Group and OMX Copenhagen go up and down completely randomly.

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Pair Corralation between Dataproces Group and OMX Copenhagen

Assuming the 90 days trading horizon Dataproces Group AS is expected to under-perform the OMX Copenhagen. In addition to that, Dataproces Group is 2.22 times more volatile than OMX Copenhagen All. It trades about -0.06 of its total potential returns per unit of risk. OMX Copenhagen All is currently generating about -0.03 per unit of volatility. If you would invest 173,551 in OMX Copenhagen All on September 3, 2024 and sell it today you would lose (1,666) from holding OMX Copenhagen All or give up 0.96% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Dataproces Group AS vs. OMX Copenhagen All

Performance

Timeline

Dataproces Group and OMX Copenhagen Volatility Contrast

Predicted Return Density

Returns

Dataproces Group AS

Pair trading matchups for Dataproces Group

	Dataproces Group vs. Penneo AS
	Dataproces Group vs. Bactiquant AS
	Dataproces Group vs. cBrain AS
	Dataproces Group vs. FOM Technologies AS

OMX Copenhagen All

Pair trading matchups for OMX Copenhagen

	OMX Copenhagen vs. Vestjysk Bank AS
	OMX Copenhagen vs. Dataproces Group AS
	OMX Copenhagen vs. NTG Nordic Transport
	OMX Copenhagen vs. Groenlandsbanken AS

Pair Trading with Dataproces Group and OMX Copenhagen

The main advantage of trading using opposite Dataproces Group and OMX Copenhagen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dataproces Group position performs unexpectedly, OMX Copenhagen 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 Copenhagen will offset losses from the drop in OMX Copenhagen's long position.

	Dataproces Group vs. Penneo AS
	Dataproces Group vs. Bactiquant AS
	Dataproces Group vs. cBrain AS
	Dataproces Group vs. FOM Technologies AS

The idea behind Dataproces Group AS and OMX Copenhagen All 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.

	OMX Copenhagen vs. Vestjysk Bank AS
	OMX Copenhagen vs. Dataproces Group AS
	OMX Copenhagen vs. NTG Nordic Transport
	OMX Copenhagen vs. Groenlandsbanken AS

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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.

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