Correlation Between OMX Copenhagen and Broendbyernes
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By analyzing existing cross correlation between OMX Copenhagen All and Broendbyernes IF Fodbold, you can compare the effects of market volatilities on OMX Copenhagen and Broendbyernes 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 Broendbyernes. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Copenhagen and Broendbyernes.
Diversification Opportunities for OMX Copenhagen and Broendbyernes
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between OMX and Broendbyernes is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding OMX Copenhagen All and Broendbyernes IF Fodbold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Broendbyernes IF Fodbold 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 Broendbyernes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Broendbyernes IF Fodbold has no effect on the direction of OMX Copenhagen i.e., OMX Copenhagen and Broendbyernes go up and down completely randomly.
Pair Corralation between OMX Copenhagen and Broendbyernes
Assuming the 90 days trading horizon OMX Copenhagen All is expected to generate 0.45 times more return on investment than Broendbyernes. However, OMX Copenhagen All is 2.22 times less risky than Broendbyernes. It trades about 0.04 of its potential returns per unit of risk. Broendbyernes IF Fodbold is currently generating about 0.01 per unit of risk. If you would invest 138,615 in OMX Copenhagen All on August 26, 2024 and sell it today you would earn a total of 32,155 from holding OMX Copenhagen All or generate 23.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
OMX Copenhagen All vs. Broendbyernes IF Fodbold
Performance |
| Timeline |
OMX Copenhagen and Broendbyernes Volatility Contrast
Predicted Return Density |
| Returns |
OMX Copenhagen All
Pair trading matchups for OMX Copenhagen
Broendbyernes IF Fodbold
Pair trading matchups for Broendbyernes
Pair Trading with OMX Copenhagen and Broendbyernes
The main advantage of trading using opposite OMX Copenhagen and Broendbyernes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Copenhagen position performs unexpectedly, Broendbyernes 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 Broendbyernes will offset losses from the drop in Broendbyernes' long position.| OMX Copenhagen vs. Nordea Bank Abp | OMX Copenhagen vs. Moens Bank AS | OMX Copenhagen vs. Strategic Investments AS | OMX Copenhagen vs. Prime Office AS |
| Broendbyernes vs. Matas AS | Broendbyernes vs. cBrain AS | Broendbyernes vs. Alm Brand | Broendbyernes vs. Netcompany Group 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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