Correlation Between OMX Copenhagen and ChemoMetec
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By analyzing existing cross correlation between OMX Copenhagen All and ChemoMetec AS, you can compare the effects of market volatilities on OMX Copenhagen and ChemoMetec 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 ChemoMetec. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Copenhagen and ChemoMetec.
Diversification Opportunities for OMX Copenhagen and ChemoMetec
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between OMX and ChemoMetec is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding OMX Copenhagen All and ChemoMetec AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ChemoMetec AS 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 ChemoMetec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ChemoMetec AS has no effect on the direction of OMX Copenhagen i.e., OMX Copenhagen and ChemoMetec go up and down completely randomly.
Pair Corralation between OMX Copenhagen and ChemoMetec
Assuming the 90 days trading horizon OMX Copenhagen is expected to generate 2.26 times less return on investment than ChemoMetec. But when comparing it to its historical volatility, OMX Copenhagen All is 3.45 times less risky than ChemoMetec. It trades about 0.04 of its potential returns per unit of risk. ChemoMetec AS is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 44,020 in ChemoMetec AS on August 25, 2024 and sell it today you would earn a total of 3,220 from holding ChemoMetec AS or generate 7.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OMX Copenhagen All vs. ChemoMetec AS
Performance |
| Timeline |
OMX Copenhagen and ChemoMetec Volatility Contrast
Predicted Return Density |
| Returns |
OMX Copenhagen All
Pair trading matchups for OMX Copenhagen
ChemoMetec AS
Pair trading matchups for ChemoMetec
Pair Trading with OMX Copenhagen and ChemoMetec
The main advantage of trading using opposite OMX Copenhagen and ChemoMetec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Copenhagen position performs unexpectedly, ChemoMetec 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 ChemoMetec will offset losses from the drop in ChemoMetec's long position.| OMX Copenhagen vs. Laan Spar Bank | OMX Copenhagen vs. Strategic Investments AS | OMX Copenhagen vs. PARKEN Sport Entertainment | OMX Copenhagen vs. Vestjysk Bank AS |
| ChemoMetec vs. cBrain AS | ChemoMetec vs. Ambu AS | ChemoMetec vs. Genmab AS | ChemoMetec vs. Zealand Pharma 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 Directory module to find actively traded commodities issued by global exchanges.
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