Correlation Between OMX Copenhagen and Kreditbanken
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By analyzing existing cross correlation between OMX Copenhagen All and Kreditbanken AS, you can compare the effects of market volatilities on OMX Copenhagen and Kreditbanken 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 Kreditbanken. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Copenhagen and Kreditbanken.
Diversification Opportunities for OMX Copenhagen and Kreditbanken
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between OMX and Kreditbanken is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding OMX Copenhagen All and Kreditbanken AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kreditbanken 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 Kreditbanken. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kreditbanken AS has no effect on the direction of OMX Copenhagen i.e., OMX Copenhagen and Kreditbanken go up and down completely randomly.
Pair Corralation between OMX Copenhagen and Kreditbanken
Assuming the 90 days trading horizon OMX Copenhagen All is expected to under-perform the Kreditbanken. In addition to that, OMX Copenhagen is 1.09 times more volatile than Kreditbanken AS. It trades about -0.16 of its total potential returns per unit of risk. Kreditbanken AS is currently generating about -0.01 per unit of volatility. If you would invest 505,000 in Kreditbanken AS on August 29, 2024 and sell it today you would lose (7,000) from holding Kreditbanken AS or give up 1.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OMX Copenhagen All vs. Kreditbanken AS
Performance |
| Timeline |
OMX Copenhagen and Kreditbanken Volatility Contrast
Predicted Return Density |
| Returns |
OMX Copenhagen All
Pair trading matchups for OMX Copenhagen
Kreditbanken AS
Pair trading matchups for Kreditbanken
Pair Trading with OMX Copenhagen and Kreditbanken
The main advantage of trading using opposite OMX Copenhagen and Kreditbanken positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Copenhagen position performs unexpectedly, Kreditbanken 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 Kreditbanken will offset losses from the drop in Kreditbanken's long position.| OMX Copenhagen vs. Strategic Investments AS | OMX Copenhagen vs. Nordinvestments AS | OMX Copenhagen vs. Groenlandsbanken AS | OMX Copenhagen vs. Kreditbanken AS |
| Kreditbanken vs. Sydbank AS | Kreditbanken vs. Jyske Bank AS | Kreditbanken vs. Alm Brand | Kreditbanken vs. Nordea Bank Abp |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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