Correlation Between OMX Copenhagen and Alm Brand
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By analyzing existing cross correlation between OMX Copenhagen All and Alm Brand, you can compare the effects of market volatilities on OMX Copenhagen and Alm Brand 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 Alm Brand. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Copenhagen and Alm Brand.
Diversification Opportunities for OMX Copenhagen and Alm Brand
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between OMX and Alm is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding OMX Copenhagen All and Alm Brand in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alm Brand 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 Alm Brand. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alm Brand has no effect on the direction of OMX Copenhagen i.e., OMX Copenhagen and Alm Brand go up and down completely randomly.
Pair Corralation between OMX Copenhagen and Alm Brand
Assuming the 90 days trading horizon OMX Copenhagen All is expected to under-perform the Alm Brand. In addition to that, OMX Copenhagen is 1.15 times more volatile than Alm Brand. It trades about -0.02 of its total potential returns per unit of risk. Alm Brand is currently generating about 0.1 per unit of volatility. If you would invest 1,332 in Alm Brand on September 1, 2024 and sell it today you would earn a total of 35.00 from holding Alm Brand or generate 2.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
OMX Copenhagen All vs. Alm Brand
Performance |
| Timeline |
OMX Copenhagen and Alm Brand Volatility Contrast
Predicted Return Density |
| Returns |
OMX Copenhagen All
Pair trading matchups for OMX Copenhagen
Alm Brand
Pair trading matchups for Alm Brand
Pair Trading with OMX Copenhagen and Alm Brand
The main advantage of trading using opposite OMX Copenhagen and Alm Brand positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Copenhagen position performs unexpectedly, Alm Brand 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 Alm Brand will offset losses from the drop in Alm Brand's long position.| OMX Copenhagen vs. Lollands Bank | OMX Copenhagen vs. Scandinavian Medical Solutions | OMX Copenhagen vs. Skjern Bank AS | OMX Copenhagen vs. Danske Andelskassers Bank |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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