Correlation Between OMX Copenhagen and Nordea Invest
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By analyzing existing cross correlation between OMX Copenhagen All and Nordea Invest Danske, you can compare the effects of market volatilities on OMX Copenhagen and Nordea Invest 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 Nordea Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Copenhagen and Nordea Invest.
Diversification Opportunities for OMX Copenhagen and Nordea Invest
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between OMX and Nordea is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding OMX Copenhagen All and Nordea Invest Danske in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordea Invest Danske 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 Nordea Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordea Invest Danske has no effect on the direction of OMX Copenhagen i.e., OMX Copenhagen and Nordea Invest go up and down completely randomly.
Pair Corralation between OMX Copenhagen and Nordea Invest
Assuming the 90 days trading horizon OMX Copenhagen All is expected to generate 1.73 times more return on investment than Nordea Invest. However, OMX Copenhagen is 1.73 times more volatile than Nordea Invest Danske. It trades about 0.18 of its potential returns per unit of risk. Nordea Invest Danske is currently generating about 0.09 per unit of risk. If you would invest 165,094 in OMX Copenhagen All on September 19, 2024 and sell it today you would earn a total of 7,067 from holding OMX Copenhagen All or generate 4.28% 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. Nordea Invest Danske
Performance |
| Timeline |
OMX Copenhagen and Nordea Invest Volatility Contrast
Predicted Return Density |
| Returns |
OMX Copenhagen All
Pair trading matchups for OMX Copenhagen
Nordea Invest Danske
Pair trading matchups for Nordea Invest
Pair Trading with OMX Copenhagen and Nordea Invest
The main advantage of trading using opposite OMX Copenhagen and Nordea Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Copenhagen position performs unexpectedly, Nordea Invest 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 Nordea Invest will offset losses from the drop in Nordea Invest's long position.| OMX Copenhagen vs. BankInvest Value Globale | OMX Copenhagen vs. Hvidbjerg Bank | OMX Copenhagen vs. Scandinavian Medical Solutions | OMX Copenhagen vs. Groenlandsbanken AS |
| Nordea Invest vs. North Media AS | Nordea Invest vs. PARKEN Sport Entertainment | Nordea Invest vs. Nordfyns Bank AS | Nordea Invest vs. TROPHY GAMES Development |
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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