Correlation Between OMX Copenhagen and BankInvest Udenlandske

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Can any of the company-specific risk be diversified away by investing in both OMX Copenhagen and BankInvest Udenlandske 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 OMX Copenhagen and BankInvest Udenlandske into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between OMX Copenhagen All and BankInvest Udenlandske Obligationer, you can compare the effects of market volatilities on OMX Copenhagen and BankInvest Udenlandske 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 BankInvest Udenlandske. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Copenhagen and BankInvest Udenlandske.

Diversification Opportunities for OMX Copenhagen and BankInvest Udenlandske

0.0

Correlation Coefficient

OMX Copenhagen

BankInvest Udenlandske

Pay attention - limited upside

The 3 months correlation between OMX and BankInvest is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding OMX Copenhagen All and BankInvest Udenlandske Obligat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BankInvest Udenlandske 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 BankInvest Udenlandske. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BankInvest Udenlandske has no effect on the direction of OMX Copenhagen i.e., OMX Copenhagen and BankInvest Udenlandske go up and down completely randomly.

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Pair Corralation between OMX Copenhagen and BankInvest Udenlandske

If you would invest 138,773 in OMX Copenhagen All on September 13, 2024 and sell it today you would earn a total of 36,855 from holding OMX Copenhagen All or generate 26.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

OMX Copenhagen All vs. BankInvest Udenlandske Obligat

Performance

Timeline

OMX Copenhagen and BankInvest Udenlandske Volatility Contrast

Predicted Return Density

Returns

OMX Copenhagen All

Pair trading matchups for OMX Copenhagen

	OMX Copenhagen vs. Cessatech AS
	OMX Copenhagen vs. NTG Nordic Transport
	OMX Copenhagen vs. Dataproces Group AS
	OMX Copenhagen vs. Jyske Bank AS

BankInvest Udenlandske Obligationer

Pair trading matchups for BankInvest Udenlandske

	BankInvest Udenlandske vs. BankInvest Emerging
	BankInvest Udenlandske vs. BankInvest Emerging
	BankInvest Udenlandske vs. BankInvest Lange Danske
	BankInvest Udenlandske vs. BankInvest Hjt

Pair Trading with OMX Copenhagen and BankInvest Udenlandske

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

	OMX Copenhagen vs. Cessatech AS
	OMX Copenhagen vs. NTG Nordic Transport
	OMX Copenhagen vs. Dataproces Group AS
	OMX Copenhagen vs. Jyske Bank AS

The idea behind OMX Copenhagen All and BankInvest Udenlandske Obligationer 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.

	BankInvest Udenlandske vs. BankInvest Emerging
	BankInvest Udenlandske vs. BankInvest Emerging
	BankInvest Udenlandske vs. BankInvest Lange Danske
	BankInvest Udenlandske vs. BankInvest Hjt

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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.

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