Correlation Between OMX Copenhagen and TROPHY GAMES
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By analyzing existing cross correlation between OMX Copenhagen All and TROPHY GAMES Development, you can compare the effects of market volatilities on OMX Copenhagen and TROPHY GAMES 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 TROPHY GAMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Copenhagen and TROPHY GAMES.
Diversification Opportunities for OMX Copenhagen and TROPHY GAMES
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between OMX and TROPHY is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding OMX Copenhagen All and TROPHY GAMES Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TROPHY GAMES Development 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 TROPHY GAMES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TROPHY GAMES Development has no effect on the direction of OMX Copenhagen i.e., OMX Copenhagen and TROPHY GAMES go up and down completely randomly.
Pair Corralation between OMX Copenhagen and TROPHY GAMES
Assuming the 90 days trading horizon OMX Copenhagen All is expected to generate 0.57 times more return on investment than TROPHY GAMES. However, OMX Copenhagen All is 1.74 times less risky than TROPHY GAMES. It trades about -0.02 of its potential returns per unit of risk. TROPHY GAMES Development is currently generating about -0.08 per unit of risk. If you would invest 172,819 in OMX Copenhagen All on September 1, 2024 and sell it today you would lose (1,524) from holding OMX Copenhagen All or give up 0.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
OMX Copenhagen All vs. TROPHY GAMES Development
Performance |
| Timeline |
OMX Copenhagen and TROPHY GAMES Volatility Contrast
Predicted Return Density |
| Returns |
OMX Copenhagen All
Pair trading matchups for OMX Copenhagen
TROPHY GAMES Development
Pair trading matchups for TROPHY GAMES
Pair Trading with OMX Copenhagen and TROPHY GAMES
The main advantage of trading using opposite OMX Copenhagen and TROPHY GAMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Copenhagen position performs unexpectedly, TROPHY GAMES 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 TROPHY GAMES will offset losses from the drop in TROPHY GAMES'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 |
| TROPHY GAMES vs. North Media AS | TROPHY GAMES vs. Bactiquant AS | TROPHY GAMES vs. FOM Technologies AS | TROPHY GAMES vs. MapsPeople 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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