Correlation Between OMX Copenhagen and Sparinvest Europa
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By analyzing existing cross correlation between OMX Copenhagen All and Sparinvest Europa Growth, you can compare the effects of market volatilities on OMX Copenhagen and Sparinvest Europa 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 Sparinvest Europa. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Copenhagen and Sparinvest Europa.
Diversification Opportunities for OMX Copenhagen and Sparinvest Europa
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between OMX and Sparinvest is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding OMX Copenhagen All and Sparinvest Europa Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sparinvest Europa Growth 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 Sparinvest Europa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sparinvest Europa Growth has no effect on the direction of OMX Copenhagen i.e., OMX Copenhagen and Sparinvest Europa go up and down completely randomly.
Pair Corralation between OMX Copenhagen and Sparinvest Europa
Assuming the 90 days trading horizon OMX Copenhagen All is expected to under-perform the Sparinvest Europa. In addition to that, OMX Copenhagen is 1.34 times more volatile than Sparinvest Europa Growth. It trades about -0.12 of its total potential returns per unit of risk. Sparinvest Europa Growth is currently generating about -0.12 per unit of volatility. If you would invest 16,396 in Sparinvest Europa Growth on August 25, 2024 and sell it today you would lose (473.00) from holding Sparinvest Europa Growth or give up 2.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OMX Copenhagen All vs. Sparinvest Europa Growth
Performance |
| Timeline |
OMX Copenhagen and Sparinvest Europa Volatility Contrast
Predicted Return Density |
| Returns |
OMX Copenhagen All
Pair trading matchups for OMX Copenhagen
Sparinvest Europa Growth
Pair trading matchups for Sparinvest Europa
Pair Trading with OMX Copenhagen and Sparinvest Europa
The main advantage of trading using opposite OMX Copenhagen and Sparinvest Europa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Copenhagen position performs unexpectedly, Sparinvest Europa 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 Sparinvest Europa will offset losses from the drop in Sparinvest Europa's long position.| OMX Copenhagen vs. Nordea Bank Abp | OMX Copenhagen vs. Moens Bank AS | OMX Copenhagen vs. Strategic Investments AS | OMX Copenhagen vs. Prime Office AS |
| Sparinvest Europa vs. Jyske Invest Nye | Sparinvest Europa vs. Jyske Invest Korte | Sparinvest Europa vs. Jyske Invest Nye | Sparinvest Europa vs. Jyske Invest Virksomhedsobligationer |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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