Correlation Between OMX Copenhagen and Pharma Equity
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By analyzing existing cross correlation between OMX Copenhagen All and Pharma Equity Group, you can compare the effects of market volatilities on OMX Copenhagen and Pharma Equity 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 Pharma Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Copenhagen and Pharma Equity.
Diversification Opportunities for OMX Copenhagen and Pharma Equity
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between OMX and Pharma is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding OMX Copenhagen All and Pharma Equity Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pharma Equity 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 Pharma Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pharma Equity Group has no effect on the direction of OMX Copenhagen i.e., OMX Copenhagen and Pharma Equity go up and down completely randomly.
Pair Corralation between OMX Copenhagen and Pharma Equity
Assuming the 90 days trading horizon OMX Copenhagen All is expected to generate 0.17 times more return on investment than Pharma Equity. However, OMX Copenhagen All is 5.89 times less risky than Pharma Equity. It trades about 0.04 of its potential returns per unit of risk. Pharma Equity Group is currently generating about 0.0 per unit of risk. If you would invest 139,896 in OMX Copenhagen All on September 3, 2024 and sell it today you would earn a total of 31,989 from holding OMX Copenhagen All or generate 22.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.4% |
| Values | Daily Returns |
OMX Copenhagen All vs. Pharma Equity Group
Performance |
| Timeline |
OMX Copenhagen and Pharma Equity Volatility Contrast
Predicted Return Density |
| Returns |
OMX Copenhagen All
Pair trading matchups for OMX Copenhagen
Pharma Equity Group
Pair trading matchups for Pharma Equity
Pair Trading with OMX Copenhagen and Pharma Equity
The main advantage of trading using opposite OMX Copenhagen and Pharma Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Copenhagen position performs unexpectedly, Pharma Equity 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 Pharma Equity will offset losses from the drop in Pharma Equity's long position.| OMX Copenhagen vs. Vestjysk Bank AS | OMX Copenhagen vs. Dataproces Group AS | OMX Copenhagen vs. NTG Nordic Transport | OMX Copenhagen vs. Groenlandsbanken AS |
| Pharma Equity vs. Novo Nordisk AS | Pharma Equity vs. Nordea Bank Abp | Pharma Equity vs. DSV Panalpina AS | Pharma Equity 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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