Correlation Between OMX Copenhagen and DKINMAKK
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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 DKINMAKK 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 DKINMAKK. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Copenhagen and DKINMAKK.
Diversification Opportunities for OMX Copenhagen and DKINMAKK
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between OMX and DKINMAKK is -0.64. 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 DKINMAKK. 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 DKINMAKK go up and down completely randomly.
Pair Corralation between OMX Copenhagen and DKINMAKK
Assuming the 90 days trading horizon OMX Copenhagen is expected to generate 1.59 times less return on investment than DKINMAKK. In addition to that, OMX Copenhagen is 1.35 times more volatile than Investeringsforeningen Danske Invest. It trades about 0.04 of its total potential returns per unit of risk. Investeringsforeningen Danske Invest is currently generating about 0.08 per unit of volatility. If you would invest 29,822 in Investeringsforeningen Danske Invest on September 12, 2024 and sell it today you would earn a total of 7,428 from holding Investeringsforeningen Danske Invest or generate 24.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.7% |
| Values | Daily Returns |
OMX Copenhagen All vs. Investeringsforeningen Danske
Performance |
| Timeline |
OMX Copenhagen and DKINMAKK Volatility Contrast
Predicted Return Density |
| Returns |
OMX Copenhagen All
Pair trading matchups for OMX Copenhagen
Investeringsforeningen Danske Invest
Pair trading matchups for DKINMAKK
Pair Trading with OMX Copenhagen and DKINMAKK
The main advantage of trading using opposite OMX Copenhagen and DKINMAKK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Copenhagen position performs unexpectedly, DKINMAKK 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 DKINMAKK will offset losses from the drop in DKINMAKK's long position.| OMX Copenhagen vs. BankIn Bredygt Klimaakt | OMX Copenhagen vs. Alefarm Brewing AS | OMX Copenhagen vs. Kreditbanken AS | OMX Copenhagen vs. Carnegie Wealth Management |
| DKINMAKK vs. Ringkjoebing Landbobank AS | DKINMAKK vs. Sydbank AS | DKINMAKK vs. Strategic Investments AS | DKINMAKK vs. Vestjysk 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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