Correlation Between OMX Copenhagen and Nordea Invest
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By analyzing existing cross correlation between OMX Copenhagen All and Nordea Invest Global, 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
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between OMX and Nordea is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding OMX Copenhagen All and Nordea Invest Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordea Invest Global 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 Global 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 is expected to generate 1.04 times less return on investment than Nordea Invest. But when comparing it to its historical volatility, OMX Copenhagen All is 1.02 times less risky than Nordea Invest. It trades about 0.04 of its potential returns per unit of risk. Nordea Invest Global is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 3,738 in Nordea Invest Global on September 20, 2024 and sell it today you would earn a total of 742.00 from holding Nordea Invest Global or generate 19.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 81.25% |
| Values | Daily Returns |
OMX Copenhagen All vs. Nordea Invest Global
Performance |
| Timeline |
OMX Copenhagen and Nordea Invest Volatility Contrast
Predicted Return Density |
| Returns |
OMX Copenhagen All
Pair trading matchups for OMX Copenhagen
Nordea Invest Global
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. Nordinvestments AS | OMX Copenhagen vs. PARKEN Sport Entertainment | OMX Copenhagen vs. NTG Nordic Transport | OMX Copenhagen vs. Moens Bank AS |
| Nordea Invest vs. Novo Nordisk AS | Nordea Invest vs. Nordea Bank Abp | Nordea Invest vs. DSV Panalpina AS | Nordea Invest vs. AP Mller |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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