Correlation Between OMX Copenhagen and Solar AS
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By analyzing existing cross correlation between OMX Copenhagen All and Solar AS, you can compare the effects of market volatilities on OMX Copenhagen and Solar 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 Solar AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Copenhagen and Solar AS.
Diversification Opportunities for OMX Copenhagen and Solar AS
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between OMX and Solar is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding OMX Copenhagen All and Solar AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solar 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 Solar AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solar AS has no effect on the direction of OMX Copenhagen i.e., OMX Copenhagen and Solar AS go up and down completely randomly.
Pair Corralation between OMX Copenhagen and Solar AS
Assuming the 90 days trading horizon OMX Copenhagen All is expected to generate 0.62 times more return on investment than Solar AS. However, OMX Copenhagen All is 1.6 times less risky than Solar AS. It trades about 0.05 of its potential returns per unit of risk. Solar AS is currently generating about -0.05 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OMX Copenhagen All vs. Solar AS
Performance |
| Timeline |
OMX Copenhagen and Solar AS Volatility Contrast
Predicted Return Density |
| Returns |
OMX Copenhagen All
Pair trading matchups for OMX Copenhagen
Solar AS
Pair trading matchups for Solar AS
Pair Trading with OMX Copenhagen and Solar AS
The main advantage of trading using opposite OMX Copenhagen and Solar AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Copenhagen position performs unexpectedly, Solar 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 Solar AS will offset losses from the drop in Solar AS'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 |
| Solar AS vs. Matas AS | Solar AS vs. NKT AS | Solar AS vs. ROCKWOOL International AS | Solar AS vs. Dampskibsselskabet Norden 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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