Correlation Between OMX Copenhagen and Scandinavian Investment
Specify exactly 2 symbols:
By analyzing existing cross correlation between OMX Copenhagen All and Scandinavian Investment Group, you can compare the effects of market volatilities on OMX Copenhagen and Scandinavian Investment 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 Scandinavian Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Copenhagen and Scandinavian Investment.
Diversification Opportunities for OMX Copenhagen and Scandinavian Investment
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between OMX and Scandinavian is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding OMX Copenhagen All and Scandinavian Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scandinavian Investment 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 Scandinavian Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scandinavian Investment has no effect on the direction of OMX Copenhagen i.e., OMX Copenhagen and Scandinavian Investment go up and down completely randomly.
Pair Corralation between OMX Copenhagen and Scandinavian Investment
Assuming the 90 days trading horizon OMX Copenhagen All is expected to generate 0.52 times more return on investment than Scandinavian Investment. However, OMX Copenhagen All is 1.91 times less risky than Scandinavian Investment. It trades about 0.05 of its potential returns per unit of risk. Scandinavian Investment Group is currently generating about 0.02 per unit of risk. If you would invest 136,682 in OMX Copenhagen All on August 29, 2024 and sell it today you would earn a total of 34,362 from holding OMX Copenhagen All or generate 25.14% 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. Scandinavian Investment Group
Performance |
| Timeline |
OMX Copenhagen and Scandinavian Investment Volatility Contrast
Predicted Return Density |
| Returns |
OMX Copenhagen All
Pair trading matchups for OMX Copenhagen
Scandinavian Investment Group
Pair trading matchups for Scandinavian Investment
Pair Trading with OMX Copenhagen and Scandinavian Investment
The main advantage of trading using opposite OMX Copenhagen and Scandinavian Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Copenhagen position performs unexpectedly, Scandinavian Investment 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 Scandinavian Investment will offset losses from the drop in Scandinavian Investment's long position.| OMX Copenhagen vs. Formuepleje Mix Medium | OMX Copenhagen vs. PARKEN Sport Entertainment | OMX Copenhagen vs. Danske Andelskassers Bank | OMX Copenhagen vs. Scandinavian Medical Solutions |
| Scandinavian Investment vs. North Media AS | Scandinavian Investment vs. Rovsing AS | Scandinavian Investment vs. Alm Brand | Scandinavian Investment vs. SKAKO 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Transaction History View history of all your transactions and understand their impact on performance |