Correlation Between OMX Copenhagen and Skjern Bank
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By analyzing existing cross correlation between OMX Copenhagen All and Skjern Bank AS, you can compare the effects of market volatilities on OMX Copenhagen and Skjern Bank 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 Skjern Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Copenhagen and Skjern Bank.
Diversification Opportunities for OMX Copenhagen and Skjern Bank
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between OMX and Skjern is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding OMX Copenhagen All and Skjern Bank AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Skjern Bank 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 Skjern Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Skjern Bank AS has no effect on the direction of OMX Copenhagen i.e., OMX Copenhagen and Skjern Bank go up and down completely randomly.
Pair Corralation between OMX Copenhagen and Skjern Bank
Assuming the 90 days trading horizon OMX Copenhagen is expected to generate 1.89 times less return on investment than Skjern Bank. But when comparing it to its historical volatility, OMX Copenhagen All is 1.42 times less risky than Skjern Bank. It trades about 0.03 of its potential returns per unit of risk. Skjern Bank AS is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 12,385 in Skjern Bank AS on August 31, 2024 and sell it today you would earn a total of 3,115 from holding Skjern Bank AS or generate 25.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
OMX Copenhagen All vs. Skjern Bank AS
Performance |
| Timeline |
OMX Copenhagen and Skjern Bank Volatility Contrast
Predicted Return Density |
| Returns |
OMX Copenhagen All
Pair trading matchups for OMX Copenhagen
Skjern Bank AS
Pair trading matchups for Skjern Bank
Pair Trading with OMX Copenhagen and Skjern Bank
The main advantage of trading using opposite OMX Copenhagen and Skjern Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Copenhagen position performs unexpectedly, Skjern Bank 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 Skjern Bank will offset losses from the drop in Skjern Bank's long position.| OMX Copenhagen vs. Laan Spar Bank | OMX Copenhagen vs. NTG Nordic Transport | OMX Copenhagen vs. Vestjysk Bank AS | OMX Copenhagen vs. Lollands Bank |
| Skjern Bank vs. Sydbank AS | Skjern Bank vs. Jyske Bank AS | Skjern Bank vs. Alm Brand | Skjern Bank vs. Nordea Bank Abp |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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