Correlation Between OMX Copenhagen and Danske Invest
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By analyzing existing cross correlation between OMX Copenhagen All and Danske Invest Danmark, you can compare the effects of market volatilities on OMX Copenhagen and Danske Invest 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 Danske Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Copenhagen and Danske Invest.
Diversification Opportunities for OMX Copenhagen and Danske Invest
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between OMX and Danske is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding OMX Copenhagen All and Danske Invest Danmark in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Danske Invest Danmark 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 Danske Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Danske Invest Danmark has no effect on the direction of OMX Copenhagen i.e., OMX Copenhagen and Danske Invest go up and down completely randomly.
Pair Corralation between OMX Copenhagen and Danske Invest
Assuming the 90 days trading horizon OMX Copenhagen All is expected to generate 1.41 times more return on investment than Danske Invest. However, OMX Copenhagen is 1.41 times more volatile than Danske Invest Danmark. It trades about -0.02 of its potential returns per unit of risk. Danske Invest Danmark is currently generating about -0.05 per unit of risk. If you would invest 172,819 in OMX Copenhagen All on September 1, 2024 and sell it today you would lose (1,524) from holding OMX Copenhagen All or give up 0.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
OMX Copenhagen All vs. Danske Invest Danmark
Performance |
| Timeline |
OMX Copenhagen and Danske Invest Volatility Contrast
Predicted Return Density |
| Returns |
OMX Copenhagen All
Pair trading matchups for OMX Copenhagen
Danske Invest Danmark
Pair trading matchups for Danske Invest
Pair Trading with OMX Copenhagen and Danske Invest
The main advantage of trading using opposite OMX Copenhagen and Danske Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Copenhagen position performs unexpectedly, Danske Invest 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 Danske Invest will offset losses from the drop in Danske Invest'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 |
| Danske Invest vs. Lollands Bank | Danske Invest vs. Skjern Bank AS | Danske Invest vs. Embla Medical hf | Danske Invest vs. Scandinavian Tobacco Group |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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