Correlation Between OMX Copenhagen and Embla Medical
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By analyzing existing cross correlation between OMX Copenhagen All and Embla Medical hf, you can compare the effects of market volatilities on OMX Copenhagen and Embla Medical 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 Embla Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Copenhagen and Embla Medical.
Diversification Opportunities for OMX Copenhagen and Embla Medical
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between OMX and Embla is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding OMX Copenhagen All and Embla Medical hf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Embla Medical hf 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 Embla Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Embla Medical hf has no effect on the direction of OMX Copenhagen i.e., OMX Copenhagen and Embla Medical go up and down completely randomly.
Pair Corralation between OMX Copenhagen and Embla Medical
Assuming the 90 days trading horizon OMX Copenhagen All is expected to under-perform the Embla Medical. In addition to that, OMX Copenhagen is 1.05 times more volatile than Embla Medical hf. It trades about -0.07 of its total potential returns per unit of risk. Embla Medical hf is currently generating about 0.03 per unit of volatility. If you would invest 3,530 in Embla Medical hf on August 30, 2024 and sell it today you would earn a total of 30.00 from holding Embla Medical hf or generate 0.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OMX Copenhagen All vs. Embla Medical hf
Performance |
| Timeline |
OMX Copenhagen and Embla Medical Volatility Contrast
Predicted Return Density |
| Returns |
OMX Copenhagen All
Pair trading matchups for OMX Copenhagen
Embla Medical hf
Pair trading matchups for Embla Medical
Pair Trading with OMX Copenhagen and Embla Medical
The main advantage of trading using opposite OMX Copenhagen and Embla Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Copenhagen position performs unexpectedly, Embla Medical 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 Embla Medical will offset losses from the drop in Embla Medical's long position.| OMX Copenhagen vs. Jyske Bank AS | OMX Copenhagen vs. Sydbank AS | OMX Copenhagen vs. PARKEN Sport Entertainment | OMX Copenhagen vs. Alefarm Brewing AS |
| Embla Medical vs. Novo Nordisk AS | Embla Medical vs. Nordea Bank Abp | Embla Medical vs. DSV Panalpina AS | Embla Medical vs. AP Mller |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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