Correlation Between OMX Copenhagen and Bang Olufsen
Specify exactly 2 symbols:
By analyzing existing cross correlation between OMX Copenhagen All and Bang Olufsen, you can compare the effects of market volatilities on OMX Copenhagen and Bang Olufsen 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 Bang Olufsen. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Copenhagen and Bang Olufsen.
Diversification Opportunities for OMX Copenhagen and Bang Olufsen
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between OMX and Bang is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding OMX Copenhagen All and Bang Olufsen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bang Olufsen 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 Bang Olufsen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bang Olufsen has no effect on the direction of OMX Copenhagen i.e., OMX Copenhagen and Bang Olufsen go up and down completely randomly.
Pair Corralation between OMX Copenhagen and Bang Olufsen
Assuming the 90 days trading horizon OMX Copenhagen All is expected to generate 0.71 times more return on investment than Bang Olufsen. However, OMX Copenhagen All is 1.42 times less risky than Bang Olufsen. It trades about 0.04 of its potential returns per unit of risk. Bang Olufsen is currently generating about 0.02 per unit of risk. If you would invest 151,622 in OMX Copenhagen All on August 26, 2024 and sell it today you would earn a total of 19,148 from holding OMX Copenhagen All or generate 12.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OMX Copenhagen All vs. Bang Olufsen
Performance |
| Timeline |
OMX Copenhagen and Bang Olufsen Volatility Contrast
Predicted Return Density |
| Returns |
OMX Copenhagen All
Pair trading matchups for OMX Copenhagen
Bang Olufsen
Pair trading matchups for Bang Olufsen
Pair Trading with OMX Copenhagen and Bang Olufsen
The main advantage of trading using opposite OMX Copenhagen and Bang Olufsen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Copenhagen position performs unexpectedly, Bang Olufsen 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 Bang Olufsen will offset losses from the drop in Bang Olufsen's 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 |
| Bang Olufsen vs. Broendbyernes IF Fodbold | Bang Olufsen vs. Matas AS | Bang Olufsen vs. NKT AS | Bang Olufsen vs. Jyske Bank 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |