Correlation Between OMX Copenhagen and Erria AS
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By analyzing existing cross correlation between OMX Copenhagen All and Erria AS, you can compare the effects of market volatilities on OMX Copenhagen and Erria AS 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 Erria AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Copenhagen and Erria AS.
Diversification Opportunities for OMX Copenhagen and Erria AS
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between OMX and Erria is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding OMX Copenhagen All and Erria AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Erria 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 Erria AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Erria AS has no effect on the direction of OMX Copenhagen i.e., OMX Copenhagen and Erria AS go up and down completely randomly.
Pair Corralation between OMX Copenhagen and Erria AS
Assuming the 90 days trading horizon OMX Copenhagen All is expected to generate 0.38 times more return on investment than Erria AS. However, OMX Copenhagen All is 2.6 times less risky than Erria AS. It trades about 0.04 of its potential returns per unit of risk. Erria AS is currently generating about 0.0 per unit of risk. If you would invest 155,082 in OMX Copenhagen All on September 2, 2024 and sell it today you would earn a total of 16,803 from holding OMX Copenhagen All or generate 10.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OMX Copenhagen All vs. Erria AS
Performance |
| Timeline |
OMX Copenhagen and Erria AS Volatility Contrast
Predicted Return Density |
| Returns |
OMX Copenhagen All
Pair trading matchups for OMX Copenhagen
Erria AS
Pair trading matchups for Erria AS
Pair Trading with OMX Copenhagen and Erria AS
The main advantage of trading using opposite OMX Copenhagen and Erria AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Copenhagen position performs unexpectedly, Erria AS 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 Erria AS will offset losses from the drop in Erria AS's long position.| OMX Copenhagen vs. Laan Spar Bank | OMX Copenhagen vs. NTG Nordic Transport | OMX Copenhagen vs. Prime Office AS | OMX Copenhagen vs. Nordfyns Bank AS |
| Erria AS vs. Scandinavian Tobacco Group | Erria AS vs. Jyske Bank AS | Erria AS vs. Dataproces Group AS | Erria AS vs. Spar Nord Bank |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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