Correlation Between OMX Copenhagen and Scandinavian Medical
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By analyzing existing cross correlation between OMX Copenhagen All and Scandinavian Medical Solutions, you can compare the effects of market volatilities on OMX Copenhagen and Scandinavian Medical 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 Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Copenhagen and Scandinavian Medical.
Diversification Opportunities for OMX Copenhagen and Scandinavian Medical
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between OMX and Scandinavian is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding OMX Copenhagen All and Scandinavian Medical Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scandinavian Medical 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 Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scandinavian Medical has no effect on the direction of OMX Copenhagen i.e., OMX Copenhagen and Scandinavian Medical go up and down completely randomly.
Pair Corralation between OMX Copenhagen and Scandinavian Medical
Assuming the 90 days trading horizon OMX Copenhagen All is expected to generate 0.32 times more return on investment than Scandinavian Medical. However, OMX Copenhagen All is 3.17 times less risky than Scandinavian Medical. It trades about 0.2 of its potential returns per unit of risk. Scandinavian Medical Solutions is currently generating about 0.01 per unit of risk. If you would invest 154,419 in OMX Copenhagen All on November 28, 2024 and sell it today you would earn a total of 8,083 from holding OMX Copenhagen All or generate 5.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OMX Copenhagen All vs. Scandinavian Medical Solutions
Performance |
| Timeline |
OMX Copenhagen and Scandinavian Medical Volatility Contrast
Predicted Return Density |
| Returns |
OMX Copenhagen All
Pair trading matchups for OMX Copenhagen
Scandinavian Medical Solutions
Pair trading matchups for Scandinavian Medical
Pair Trading with OMX Copenhagen and Scandinavian Medical
The main advantage of trading using opposite OMX Copenhagen and Scandinavian Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Copenhagen position performs unexpectedly, Scandinavian Medical 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 Medical will offset losses from the drop in Scandinavian Medical's long position.| OMX Copenhagen vs. NTG Nordic Transport | OMX Copenhagen vs. Sydbank AS | OMX Copenhagen vs. Prime Office AS | OMX Copenhagen vs. Djurslands Bank |
| Scandinavian Medical vs. Laan Spar Bank | Scandinavian Medical vs. BankIn Bredygt Klimaakt | Scandinavian Medical vs. Scandinavian Investment Group | Scandinavian Medical 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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