Correlation Between Hvidbjerg Bank and OMX Copenhagen
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By analyzing existing cross correlation between Hvidbjerg Bank and OMX Copenhagen All, you can compare the effects of market volatilities on Hvidbjerg 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 Hvidbjerg Bank with a short position of OMX Copenhagen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hvidbjerg Bank and OMX Copenhagen.
Diversification Opportunities for Hvidbjerg Bank and OMX Copenhagen
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hvidbjerg and OMX is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Hvidbjerg Bank 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 Hvidbjerg 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 Hvidbjerg Bank 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 Hvidbjerg Bank i.e., Hvidbjerg Bank and OMX Copenhagen go up and down completely randomly.
Pair Corralation between Hvidbjerg Bank and OMX Copenhagen
Assuming the 90 days trading horizon Hvidbjerg Bank is expected to generate 1.64 times less return on investment than OMX Copenhagen. But when comparing it to its historical volatility, Hvidbjerg Bank is 1.1 times less risky than OMX Copenhagen. It trades about 0.12 of its potential returns per unit of risk. OMX Copenhagen All is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 165,094 in OMX Copenhagen All on September 19, 2024 and sell it today you would earn a total of 7,067 from holding OMX Copenhagen All or generate 4.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hvidbjerg Bank vs. OMX Copenhagen All
Performance |
| Timeline |
Hvidbjerg Bank and OMX Copenhagen Volatility Contrast
Predicted Return Density |
| Returns |
Hvidbjerg Bank
Pair trading matchups for Hvidbjerg Bank
OMX Copenhagen All
Pair trading matchups for OMX Copenhagen
Pair Trading with Hvidbjerg Bank and OMX Copenhagen
The main advantage of trading using opposite Hvidbjerg Bank and OMX Copenhagen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hvidbjerg 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.| Hvidbjerg Bank vs. Skjern Bank AS | Hvidbjerg Bank vs. Lollands Bank | Hvidbjerg Bank vs. Djurslands Bank | Hvidbjerg Bank vs. Nordfyns Bank AS |
| OMX Copenhagen vs. BankInvest Value Globale | OMX Copenhagen vs. Hvidbjerg Bank | OMX Copenhagen vs. Scandinavian Medical Solutions | OMX Copenhagen vs. Groenlandsbanken 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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