Correlation Between OMX Copenhagen and Ennogie Solar
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By analyzing existing cross correlation between OMX Copenhagen All and Ennogie Solar Group, you can compare the effects of market volatilities on OMX Copenhagen and Ennogie Solar 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 Ennogie Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Copenhagen and Ennogie Solar.
Diversification Opportunities for OMX Copenhagen and Ennogie Solar
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between OMX and Ennogie is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding OMX Copenhagen All and Ennogie Solar Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ennogie Solar Group 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 Ennogie Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ennogie Solar Group has no effect on the direction of OMX Copenhagen i.e., OMX Copenhagen and Ennogie Solar go up and down completely randomly.
Pair Corralation between OMX Copenhagen and Ennogie Solar
Assuming the 90 days trading horizon OMX Copenhagen All is expected to generate 0.3 times more return on investment than Ennogie Solar. However, OMX Copenhagen All is 3.31 times less risky than Ennogie Solar. It trades about 0.04 of its potential returns per unit of risk. Ennogie Solar Group is currently generating about -0.05 per unit of risk. If you would invest 138,615 in OMX Copenhagen All on August 26, 2024 and sell it today you would earn a total of 32,155 from holding OMX Copenhagen All or generate 23.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
OMX Copenhagen All vs. Ennogie Solar Group
Performance |
| Timeline |
OMX Copenhagen and Ennogie Solar Volatility Contrast
Predicted Return Density |
| Returns |
OMX Copenhagen All
Pair trading matchups for OMX Copenhagen
Ennogie Solar Group
Pair trading matchups for Ennogie Solar
Pair Trading with OMX Copenhagen and Ennogie Solar
The main advantage of trading using opposite OMX Copenhagen and Ennogie Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Copenhagen position performs unexpectedly, Ennogie Solar 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 Ennogie Solar will offset losses from the drop in Ennogie Solar's long position.| OMX Copenhagen vs. Nordea Bank Abp | OMX Copenhagen vs. Moens Bank AS | OMX Copenhagen vs. Strategic Investments AS | OMX Copenhagen vs. Prime Office AS |
| Ennogie Solar vs. Green Hydrogen Systems | Ennogie Solar vs. ALK Abell AS | Ennogie Solar vs. H Lundbeck AS | Ennogie Solar vs. TORM plc |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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