Correlation Between OMX Copenhagen and Silkeborg
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By analyzing existing cross correlation between OMX Copenhagen All and Silkeborg IF Invest, you can compare the effects of market volatilities on OMX Copenhagen and Silkeborg 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 Silkeborg. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Copenhagen and Silkeborg.
Diversification Opportunities for OMX Copenhagen and Silkeborg
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between OMX and Silkeborg is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding OMX Copenhagen All and Silkeborg IF Invest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silkeborg IF Invest 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 Silkeborg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silkeborg IF Invest has no effect on the direction of OMX Copenhagen i.e., OMX Copenhagen and Silkeborg go up and down completely randomly.
Pair Corralation between OMX Copenhagen and Silkeborg
Assuming the 90 days trading horizon OMX Copenhagen is expected to generate 3.99 times less return on investment than Silkeborg. But when comparing it to its historical volatility, OMX Copenhagen All is 3.42 times less risky than Silkeborg. It trades about 0.14 of its potential returns per unit of risk. Silkeborg IF Invest is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 3,220 in Silkeborg IF Invest on September 20, 2024 and sell it today you would earn a total of 440.00 from holding Silkeborg IF Invest or generate 13.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
OMX Copenhagen All vs. Silkeborg IF Invest
Performance |
| Timeline |
OMX Copenhagen and Silkeborg Volatility Contrast
Predicted Return Density |
| Returns |
OMX Copenhagen All
Pair trading matchups for OMX Copenhagen
Silkeborg IF Invest
Pair trading matchups for Silkeborg
Pair Trading with OMX Copenhagen and Silkeborg
The main advantage of trading using opposite OMX Copenhagen and Silkeborg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Copenhagen position performs unexpectedly, Silkeborg 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 Silkeborg will offset losses from the drop in Silkeborg'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 |
| Silkeborg vs. PARKEN Sport Entertainment | Silkeborg vs. Aalborg Boldspilklub AS | Silkeborg vs. Broendbyernes IF Fodbold | Silkeborg vs. Strategic Investments 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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