Correlation Between OMX Copenhagen and Penneo AS
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By analyzing existing cross correlation between OMX Copenhagen All and Penneo AS, you can compare the effects of market volatilities on OMX Copenhagen and Penneo 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 Penneo AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Copenhagen and Penneo AS.
Diversification Opportunities for OMX Copenhagen and Penneo AS
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between OMX and Penneo is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding OMX Copenhagen All and Penneo AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Penneo 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 Penneo AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Penneo AS has no effect on the direction of OMX Copenhagen i.e., OMX Copenhagen and Penneo AS go up and down completely randomly.
Pair Corralation between OMX Copenhagen and Penneo AS
Assuming the 90 days trading horizon OMX Copenhagen All is expected to under-perform the Penneo AS. But the index apears to be less risky and, when comparing its historical volatility, OMX Copenhagen All is 15.82 times less risky than Penneo AS. The index trades about -0.02 of its potential returns per unit of risk. The Penneo AS is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 822.00 in Penneo AS on September 1, 2024 and sell it today you would earn a total of 758.00 from holding Penneo AS or generate 92.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
OMX Copenhagen All vs. Penneo AS
Performance |
| Timeline |
OMX Copenhagen and Penneo AS Volatility Contrast
Predicted Return Density |
| Returns |
OMX Copenhagen All
Pair trading matchups for OMX Copenhagen
Penneo AS
Pair trading matchups for Penneo AS
Pair Trading with OMX Copenhagen and Penneo AS
The main advantage of trading using opposite OMX Copenhagen and Penneo AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Copenhagen position performs unexpectedly, Penneo 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 Penneo AS will offset losses from the drop in Penneo AS's long position.| OMX Copenhagen vs. Lollands Bank | OMX Copenhagen vs. Scandinavian Medical Solutions | OMX Copenhagen vs. Skjern Bank AS | OMX Copenhagen vs. Danske Andelskassers Bank |
| Penneo AS vs. cBrain AS | Penneo AS vs. FOM Technologies AS | Penneo AS vs. ChemoMetec AS | Penneo AS vs. BioPorto |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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