Correlation Between OMX Copenhagen and RIAS AS
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By analyzing existing cross correlation between OMX Copenhagen All and RIAS AS, you can compare the effects of market volatilities on OMX Copenhagen and RIAS 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 RIAS AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Copenhagen and RIAS AS.
Diversification Opportunities for OMX Copenhagen and RIAS AS
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between OMX and RIAS is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding OMX Copenhagen All and RIAS AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RIAS 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 RIAS AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RIAS AS has no effect on the direction of OMX Copenhagen i.e., OMX Copenhagen and RIAS AS go up and down completely randomly.
Pair Corralation between OMX Copenhagen and RIAS AS
Assuming the 90 days trading horizon OMX Copenhagen All is expected to under-perform the RIAS AS. But the index apears to be less risky and, when comparing its historical volatility, OMX Copenhagen All is 1.04 times less risky than RIAS AS. The index trades about -0.03 of its potential returns per unit of risk. The RIAS AS is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 62,000 in RIAS AS on September 3, 2024 and sell it today you would earn a total of 500.00 from holding RIAS AS or generate 0.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OMX Copenhagen All vs. RIAS AS
Performance |
| Timeline |
OMX Copenhagen and RIAS AS Volatility Contrast
Predicted Return Density |
| Returns |
OMX Copenhagen All
Pair trading matchups for OMX Copenhagen
RIAS AS
Pair trading matchups for RIAS AS
Pair Trading with OMX Copenhagen and RIAS AS
The main advantage of trading using opposite OMX Copenhagen and RIAS AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Copenhagen position performs unexpectedly, RIAS 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 RIAS AS will offset losses from the drop in RIAS AS'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 |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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