Correlation Between Scandinavian Investment and OMX Copenhagen
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By analyzing existing cross correlation between Scandinavian Investment Group and OMX Copenhagen All, you can compare the effects of market volatilities on Scandinavian Investment and OMX Copenhagen 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 Scandinavian Investment with a short position of OMX Copenhagen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scandinavian Investment and OMX Copenhagen.
Diversification Opportunities for Scandinavian Investment and OMX Copenhagen
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Scandinavian and OMX is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Scandinavian Investment Group and OMX Copenhagen All in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OMX Copenhagen All and Scandinavian Investment 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 Scandinavian Investment Group are associated (or correlated) with OMX Copenhagen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OMX Copenhagen All has no effect on the direction of Scandinavian Investment i.e., Scandinavian Investment and OMX Copenhagen go up and down completely randomly.
Pair Corralation between Scandinavian Investment and OMX Copenhagen
Assuming the 90 days trading horizon Scandinavian Investment Group is expected to generate 1.02 times more return on investment than OMX Copenhagen. However, Scandinavian Investment is 1.02 times more volatile than OMX Copenhagen All. It trades about 0.05 of its potential returns per unit of risk. OMX Copenhagen All is currently generating about -0.07 per unit of risk. If you would invest 300.00 in Scandinavian Investment Group on November 3, 2024 and sell it today you would earn a total of 26.00 from holding Scandinavian Investment Group or generate 8.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scandinavian Investment Group vs. OMX Copenhagen All
Performance |
| Timeline |
Scandinavian Investment and OMX Copenhagen Volatility Contrast
Predicted Return Density |
| Returns |
Scandinavian Investment Group
Pair trading matchups for Scandinavian Investment
OMX Copenhagen All
Pair trading matchups for OMX Copenhagen
Pair Trading with Scandinavian Investment and OMX Copenhagen
The main advantage of trading using opposite Scandinavian Investment and OMX Copenhagen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scandinavian Investment position performs unexpectedly, OMX Copenhagen 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 OMX Copenhagen will offset losses from the drop in OMX Copenhagen's long position.| Scandinavian Investment vs. North Media AS | Scandinavian Investment vs. Rovsing AS | Scandinavian Investment vs. Alm Brand | Scandinavian Investment vs. SKAKO AS |
| OMX Copenhagen vs. Embla Medical hf | OMX Copenhagen vs. Prime Office AS | OMX Copenhagen vs. Danske Andelskassers Bank | OMX Copenhagen vs. Nordinvestments 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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