Correlation Between Fynske Bank and OMX Copenhagen
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By analyzing existing cross correlation between Fynske Bank AS and OMX Copenhagen All, you can compare the effects of market volatilities on Fynske Bank 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 Fynske Bank with a short position of OMX Copenhagen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fynske Bank and OMX Copenhagen.
Diversification Opportunities for Fynske Bank and OMX Copenhagen
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fynske and OMX is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Fynske Bank 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 Fynske Bank 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 Fynske Bank 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 Fynske Bank i.e., Fynske Bank and OMX Copenhagen go up and down completely randomly.
Pair Corralation between Fynske Bank and OMX Copenhagen
Assuming the 90 days trading horizon Fynske Bank is expected to generate 1.22 times less return on investment than OMX Copenhagen. In addition to that, Fynske Bank is 1.47 times more volatile than OMX Copenhagen All. It trades about 0.03 of its total potential returns per unit of risk. OMX Copenhagen All is currently generating about 0.05 per unit of volatility. If you would invest 138,126 in OMX Copenhagen All on September 12, 2024 and sell it today you would earn a total of 37,648 from holding OMX Copenhagen All or generate 27.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fynske Bank AS vs. OMX Copenhagen All
Performance |
| Timeline |
Fynske Bank and OMX Copenhagen Volatility Contrast
Predicted Return Density |
| Returns |
Fynske Bank AS
Pair trading matchups for Fynske Bank
OMX Copenhagen All
Pair trading matchups for OMX Copenhagen
Pair Trading with Fynske Bank and OMX Copenhagen
The main advantage of trading using opposite Fynske Bank and OMX Copenhagen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fynske Bank 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.| Fynske Bank vs. FLSmidth Co | Fynske Bank vs. Danske Bank AS | Fynske Bank vs. ISS AS | Fynske Bank vs. DSV Panalpina AS |
| OMX Copenhagen vs. BankIn Bredygt Klimaakt | OMX Copenhagen vs. Alefarm Brewing AS | OMX Copenhagen vs. Kreditbanken AS | OMX Copenhagen vs. Carnegie Wealth Management |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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