Correlation Between Vestas Wind and OMX Copenhagen
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By analyzing existing cross correlation between Vestas Wind Systems and OMX Copenhagen All, you can compare the effects of market volatilities on Vestas Wind 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 Vestas Wind with a short position of OMX Copenhagen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vestas Wind and OMX Copenhagen.
Diversification Opportunities for Vestas Wind and OMX Copenhagen
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Vestas and OMX is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Vestas Wind Systems 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 Vestas Wind 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 Vestas Wind Systems 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 Vestas Wind i.e., Vestas Wind and OMX Copenhagen go up and down completely randomly.
Pair Corralation between Vestas Wind and OMX Copenhagen
Assuming the 90 days trading horizon Vestas Wind Systems is expected to under-perform the OMX Copenhagen. In addition to that, Vestas Wind is 3.2 times more volatile than OMX Copenhagen All. It trades about -0.26 of its total potential returns per unit of risk. OMX Copenhagen All is currently generating about -0.08 per unit of volatility. If you would invest 175,751 in OMX Copenhagen All on August 28, 2024 and sell it today you would lose (4,707) from holding OMX Copenhagen All or give up 2.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vestas Wind Systems vs. OMX Copenhagen All
Performance |
| Timeline |
Vestas Wind and OMX Copenhagen Volatility Contrast
Predicted Return Density |
| Returns |
Vestas Wind Systems
Pair trading matchups for Vestas Wind
OMX Copenhagen All
Pair trading matchups for OMX Copenhagen
Pair Trading with Vestas Wind and OMX Copenhagen
The main advantage of trading using opposite Vestas Wind and OMX Copenhagen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vestas Wind 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.| Vestas Wind vs. Orsted AS | Vestas Wind vs. Danske Bank AS | Vestas Wind vs. Bavarian Nordic | Vestas Wind vs. DSV Panalpina AS |
| OMX Copenhagen vs. Formuepleje Mix Medium | OMX Copenhagen vs. BankInv GloAkColum Threadndl | OMX Copenhagen vs. PARKEN Sport Entertainment | OMX Copenhagen vs. Danske Andelskassers Bank |
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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