Correlation Between OMX Copenhagen and Sparinvest INDEX
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By analyzing existing cross correlation between OMX Copenhagen All and Sparinvest INDEX Global, you can compare the effects of market volatilities on OMX Copenhagen and Sparinvest INDEX 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 INDEX. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Copenhagen and Sparinvest INDEX.
Diversification Opportunities for OMX Copenhagen and Sparinvest INDEX
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between OMX and Sparinvest is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding OMX Copenhagen All and Sparinvest INDEX Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sparinvest INDEX Global 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 INDEX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sparinvest INDEX Global has no effect on the direction of OMX Copenhagen i.e., OMX Copenhagen and Sparinvest INDEX go up and down completely randomly.
Pair Corralation between OMX Copenhagen and Sparinvest INDEX
Assuming the 90 days trading horizon OMX Copenhagen All is expected to generate 2.03 times more return on investment than Sparinvest INDEX. However, OMX Copenhagen is 2.03 times more volatile than Sparinvest INDEX Global. It trades about 0.05 of its potential returns per unit of risk. Sparinvest INDEX Global is currently generating about 0.08 per unit of risk. If you would invest 140,627 in OMX Copenhagen All on September 4, 2024 and sell it today you would earn a total of 34,223 from holding OMX Copenhagen All or generate 24.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OMX Copenhagen All vs. Sparinvest INDEX Global
Performance |
| Timeline |
OMX Copenhagen and Sparinvest INDEX Volatility Contrast
Predicted Return Density |
| Returns |
OMX Copenhagen All
Pair trading matchups for OMX Copenhagen
Sparinvest INDEX Global
Pair trading matchups for Sparinvest INDEX
Pair Trading with OMX Copenhagen and Sparinvest INDEX
The main advantage of trading using opposite OMX Copenhagen and Sparinvest INDEX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Copenhagen position performs unexpectedly, Sparinvest INDEX 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 INDEX will offset losses from the drop in Sparinvest INDEX's long position.| OMX Copenhagen vs. PARKEN Sport Entertainment | OMX Copenhagen vs. Formuepleje Mix Medium | OMX Copenhagen vs. Fynske Bank AS | OMX Copenhagen vs. Nordfyns Bank AS |
| Sparinvest INDEX vs. Jyske Invest Nye | Sparinvest INDEX vs. Jyske Invest Korte | Sparinvest INDEX vs. Jyske Invest Nye | Sparinvest INDEX 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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