Correlation Between OMX Copenhagen and Zealand Pharma
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By analyzing existing cross correlation between OMX Copenhagen All and Zealand Pharma AS, you can compare the effects of market volatilities on OMX Copenhagen and Zealand Pharma 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 Zealand Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Copenhagen and Zealand Pharma.
Diversification Opportunities for OMX Copenhagen and Zealand Pharma
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between OMX and Zealand is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding OMX Copenhagen All and Zealand Pharma AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zealand Pharma 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 Zealand Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zealand Pharma AS has no effect on the direction of OMX Copenhagen i.e., OMX Copenhagen and Zealand Pharma go up and down completely randomly.
Pair Corralation between OMX Copenhagen and Zealand Pharma
Assuming the 90 days trading horizon OMX Copenhagen All is expected to generate 0.34 times more return on investment than Zealand Pharma. However, OMX Copenhagen All is 2.94 times less risky than Zealand Pharma. It trades about -0.02 of its potential returns per unit of risk. Zealand Pharma AS is currently generating about -0.07 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 | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
OMX Copenhagen All vs. Zealand Pharma AS
Performance |
| Timeline |
OMX Copenhagen and Zealand Pharma Volatility Contrast
Predicted Return Density |
| Returns |
OMX Copenhagen All
Pair trading matchups for OMX Copenhagen
Zealand Pharma AS
Pair trading matchups for Zealand Pharma
Pair Trading with OMX Copenhagen and Zealand Pharma
The main advantage of trading using opposite OMX Copenhagen and Zealand Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Copenhagen position performs unexpectedly, Zealand Pharma 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 Zealand Pharma will offset losses from the drop in Zealand Pharma'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 |
| Zealand Pharma vs. Bavarian Nordic | Zealand Pharma vs. Ambu AS | Zealand Pharma vs. Genmab AS | Zealand Pharma vs. ALK Abell 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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