Correlation Between OMX Copenhagen and Aalborg Boldspilklub
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By analyzing existing cross correlation between OMX Copenhagen All and Aalborg Boldspilklub AS, you can compare the effects of market volatilities on OMX Copenhagen and Aalborg Boldspilklub 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 Copenhagen with a short position of Aalborg Boldspilklub. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Copenhagen and Aalborg Boldspilklub.
Diversification Opportunities for OMX Copenhagen and Aalborg Boldspilklub
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between OMX and Aalborg is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding OMX Copenhagen All and Aalborg Boldspilklub AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aalborg Boldspilklub and OMX Copenhagen 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 Copenhagen All are associated (or correlated) with Aalborg Boldspilklub. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aalborg Boldspilklub has no effect on the direction of OMX Copenhagen i.e., OMX Copenhagen and Aalborg Boldspilklub go up and down completely randomly.
Pair Corralation between OMX Copenhagen and Aalborg Boldspilklub
Assuming the 90 days trading horizon OMX Copenhagen All is expected to under-perform the Aalborg Boldspilklub. But the index apears to be less risky and, when comparing its historical volatility, OMX Copenhagen All is 1.11 times less risky than Aalborg Boldspilklub. The index trades about -0.17 of its potential returns per unit of risk. The Aalborg Boldspilklub AS is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 3,580 in Aalborg Boldspilklub AS on September 22, 2024 and sell it today you would lose (260.00) from holding Aalborg Boldspilklub AS or give up 7.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OMX Copenhagen All vs. Aalborg Boldspilklub AS
Performance |
| Timeline |
OMX Copenhagen and Aalborg Boldspilklub Volatility Contrast
Predicted Return Density |
| Returns |
OMX Copenhagen All
Pair trading matchups for OMX Copenhagen
Aalborg Boldspilklub AS
Pair trading matchups for Aalborg Boldspilklub
Pair Trading with OMX Copenhagen and Aalborg Boldspilklub
The main advantage of trading using opposite OMX Copenhagen and Aalborg Boldspilklub positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Copenhagen position performs unexpectedly, Aalborg Boldspilklub 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 Aalborg Boldspilklub will offset losses from the drop in Aalborg Boldspilklub's long position.| OMX Copenhagen vs. PARKEN Sport Entertainment | OMX Copenhagen vs. Laan Spar Bank | OMX Copenhagen vs. Moens Bank AS | OMX Copenhagen vs. Sydbank AS |
| Aalborg Boldspilklub vs. PARKEN Sport Entertainment | Aalborg Boldspilklub vs. Broendbyernes IF Fodbold | Aalborg Boldspilklub vs. Silkeborg IF Invest | Aalborg Boldspilklub vs. Kreditbanken 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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