Correlation Between OMX Copenhagen and Movinn AS
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By analyzing existing cross correlation between OMX Copenhagen All and Movinn AS, you can compare the effects of market volatilities on OMX Copenhagen and Movinn 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 Movinn AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Copenhagen and Movinn AS.
Diversification Opportunities for OMX Copenhagen and Movinn AS
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between OMX and Movinn is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding OMX Copenhagen All and Movinn AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Movinn 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 Movinn AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Movinn AS has no effect on the direction of OMX Copenhagen i.e., OMX Copenhagen and Movinn AS go up and down completely randomly.
Pair Corralation between OMX Copenhagen and Movinn AS
Assuming the 90 days trading horizon OMX Copenhagen is expected to generate 7.31 times less return on investment than Movinn AS. But when comparing it to its historical volatility, OMX Copenhagen All is 3.7 times less risky than Movinn AS. It trades about 0.03 of its potential returns per unit of risk. Movinn AS is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 234.00 in Movinn AS on August 29, 2024 and sell it today you would earn a total of 148.00 from holding Movinn AS or generate 63.25% 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. Movinn AS
Performance |
| Timeline |
OMX Copenhagen and Movinn AS Volatility Contrast
Predicted Return Density |
| Returns |
OMX Copenhagen All
Pair trading matchups for OMX Copenhagen
Movinn AS
Pair trading matchups for Movinn AS
Pair Trading with OMX Copenhagen and Movinn AS
The main advantage of trading using opposite OMX Copenhagen and Movinn AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Copenhagen position performs unexpectedly, Movinn 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 Movinn AS will offset losses from the drop in Movinn AS's long position.| OMX Copenhagen vs. Formuepleje Mix Medium | OMX Copenhagen vs. PARKEN Sport Entertainment | OMX Copenhagen vs. Danske Andelskassers Bank | OMX Copenhagen vs. Scandinavian Medical Solutions |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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