Correlation Between OMX Copenhagen and Sparinvest SICAV
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By analyzing existing cross correlation between OMX Copenhagen All and Sparinvest SICAV Procedo, you can compare the effects of market volatilities on OMX Copenhagen and Sparinvest SICAV 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 SICAV. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Copenhagen and Sparinvest SICAV.
Diversification Opportunities for OMX Copenhagen and Sparinvest SICAV
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between OMX and Sparinvest is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding OMX Copenhagen All and Sparinvest SICAV Procedo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sparinvest SICAV Procedo 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 SICAV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sparinvest SICAV Procedo has no effect on the direction of OMX Copenhagen i.e., OMX Copenhagen and Sparinvest SICAV go up and down completely randomly.
Pair Corralation between OMX Copenhagen and Sparinvest SICAV
Assuming the 90 days trading horizon OMX Copenhagen All is expected to under-perform the Sparinvest SICAV. In addition to that, OMX Copenhagen is 1.99 times more volatile than Sparinvest SICAV Procedo. It trades about -0.02 of its total potential returns per unit of risk. Sparinvest SICAV Procedo is currently generating about 0.18 per unit of volatility. If you would invest 26,250 in Sparinvest SICAV Procedo on September 1, 2024 and sell it today you would earn a total of 700.00 from holding Sparinvest SICAV Procedo or generate 2.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
OMX Copenhagen All vs. Sparinvest SICAV Procedo
Performance |
| Timeline |
OMX Copenhagen and Sparinvest SICAV Volatility Contrast
Predicted Return Density |
| Returns |
OMX Copenhagen All
Pair trading matchups for OMX Copenhagen
Sparinvest SICAV Procedo
Pair trading matchups for Sparinvest SICAV
Pair Trading with OMX Copenhagen and Sparinvest SICAV
The main advantage of trading using opposite OMX Copenhagen and Sparinvest SICAV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Copenhagen position performs unexpectedly, Sparinvest SICAV 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 SICAV will offset losses from the drop in Sparinvest SICAV's long position.| OMX Copenhagen vs. Lollands Bank | OMX Copenhagen vs. Scandinavian Medical Solutions | OMX Copenhagen vs. Skjern Bank AS | OMX Copenhagen vs. Danske Andelskassers Bank |
| Sparinvest SICAV vs. Jyske Invest Nye | Sparinvest SICAV vs. Jyske Invest Korte | Sparinvest SICAV vs. Jyske Invest Nye | Sparinvest SICAV 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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