Correlation Between OMX Copenhagen and DKIDKA
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By analyzing existing cross correlation between OMX Copenhagen All and Investeringsforeningen Danske Invest, you can compare the effects of market volatilities on OMX Copenhagen and DKIDKA 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 DKIDKA. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Copenhagen and DKIDKA.
Diversification Opportunities for OMX Copenhagen and DKIDKA
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between OMX and DKIDKA is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding OMX Copenhagen All and Investeringsforeningen Danske in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investeringsforeningen 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 DKIDKA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investeringsforeningen has no effect on the direction of OMX Copenhagen i.e., OMX Copenhagen and DKIDKA go up and down completely randomly.
Pair Corralation between OMX Copenhagen and DKIDKA
Assuming the 90 days trading horizon OMX Copenhagen All is expected to under-perform the DKIDKA. In addition to that, OMX Copenhagen is 1.92 times more volatile than Investeringsforeningen Danske Invest. It trades about -0.07 of its total potential returns per unit of risk. Investeringsforeningen Danske Invest is currently generating about -0.02 per unit of volatility. If you would invest 124,862 in Investeringsforeningen Danske Invest on December 4, 2024 and sell it today you would lose (3,057) from holding Investeringsforeningen Danske Invest or give up 2.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OMX Copenhagen All vs. Investeringsforeningen Danske
Performance |
| Timeline |
OMX Copenhagen and DKIDKA Volatility Contrast
Predicted Return Density |
| Returns |
OMX Copenhagen All
Pair trading matchups for OMX Copenhagen
Investeringsforeningen Danske Invest
Pair trading matchups for DKIDKA
Pair Trading with OMX Copenhagen and DKIDKA
The main advantage of trading using opposite OMX Copenhagen and DKIDKA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Copenhagen position performs unexpectedly, DKIDKA 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 DKIDKA will offset losses from the drop in DKIDKA's long position.| OMX Copenhagen vs. Fynske Bank AS | OMX Copenhagen vs. Lollands Bank | OMX Copenhagen vs. Strategic Investments AS | OMX Copenhagen vs. Scandinavian Investment Group |
| DKIDKA vs. Jyske Invest Nye | DKIDKA vs. Jyske Invest Korte | DKIDKA vs. Jyske Invest Nye | DKIDKA vs. Jyske Invest Virksomhedsobligationer |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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