Correlation Between Danske Andelskassers and OMX Copenhagen
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By analyzing existing cross correlation between Danske Andelskassers Bank and OMX Copenhagen All, you can compare the effects of market volatilities on Danske Andelskassers 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 Danske Andelskassers with a short position of OMX Copenhagen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Danske Andelskassers and OMX Copenhagen.
Diversification Opportunities for Danske Andelskassers and OMX Copenhagen
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Danske and OMX is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Danske Andelskassers Bank 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 Danske Andelskassers 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 Danske Andelskassers Bank 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 Danske Andelskassers i.e., Danske Andelskassers and OMX Copenhagen go up and down completely randomly.
Pair Corralation between Danske Andelskassers and OMX Copenhagen
Assuming the 90 days trading horizon Danske Andelskassers Bank is expected to generate 1.34 times more return on investment than OMX Copenhagen. However, Danske Andelskassers is 1.34 times more volatile than OMX Copenhagen All. It trades about 0.09 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 1,285 in Danske Andelskassers Bank on November 30, 2024 and sell it today you would earn a total of 155.00 from holding Danske Andelskassers Bank or generate 12.06% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Danske Andelskassers Bank vs. OMX Copenhagen All
Performance |
Timeline |
Danske Andelskassers and OMX Copenhagen Volatility Contrast
Predicted Return Density |
Returns |
Danske Andelskassers Bank
Pair trading matchups for Danske Andelskassers
OMX Copenhagen All
Pair trading matchups for OMX Copenhagen
Pair Trading with Danske Andelskassers and OMX Copenhagen
The main advantage of trading using opposite Danske Andelskassers and OMX Copenhagen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Danske Andelskassers 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.Danske Andelskassers vs. Vestjysk Bank AS | Danske Andelskassers vs. Spar Nord Bank | Danske Andelskassers vs. Skjern Bank AS | Danske Andelskassers vs. RTX AS |
OMX Copenhagen vs. Djurslands Bank | OMX Copenhagen vs. Laan Spar Bank | OMX Copenhagen vs. Scandinavian Investment Group | OMX Copenhagen vs. PARKEN Sport Entertainment |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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