Correlation Between OMX Copenhagen and Bucharest BET-NG
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By analyzing existing cross correlation between OMX Copenhagen All and Bucharest BET-NG, you can compare the effects of market volatilities on OMX Copenhagen and Bucharest BET-NG 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 Bucharest BET-NG. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Copenhagen and Bucharest BET-NG.
Diversification Opportunities for OMX Copenhagen and Bucharest BET-NG
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between OMX and Bucharest is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding OMX Copenhagen All and Bucharest BET-NG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bucharest BET-NG 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 Bucharest BET-NG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bucharest BET-NG has no effect on the direction of OMX Copenhagen i.e., OMX Copenhagen and Bucharest BET-NG go up and down completely randomly.
Pair Corralation between OMX Copenhagen and Bucharest BET-NG
Assuming the 90 days trading horizon OMX Copenhagen All is expected to generate 2.42 times more return on investment than Bucharest BET-NG. However, OMX Copenhagen is 2.42 times more volatile than Bucharest BET-NG. It trades about 0.02 of its potential returns per unit of risk. Bucharest BET-NG is currently generating about -0.04 per unit of risk. If you would invest 184,223 in OMX Copenhagen All on February 1, 2024 and sell it today you would earn a total of 750.00 from holding OMX Copenhagen All or generate 0.41% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
OMX Copenhagen All vs. Bucharest BET-NG
Performance |
Timeline |
OMX Copenhagen and Bucharest BET-NG Volatility Contrast
Predicted Return Density |
Returns |
OMX Copenhagen All
Pair trading matchups for OMX Copenhagen
Bucharest BET-NG
Pair trading matchups for Bucharest BET-NG
Pair Trading with OMX Copenhagen and Bucharest BET-NG
The main advantage of trading using opposite OMX Copenhagen and Bucharest BET-NG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Copenhagen position performs unexpectedly, Bucharest BET-NG 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 Bucharest BET-NG will offset losses from the drop in Bucharest BET-NG's long position.OMX Copenhagen vs. NTG Nordic Transport | OMX Copenhagen vs. Nordfyns Bank AS | OMX Copenhagen vs. Strategic Investments AS | OMX Copenhagen vs. BankInvest Value Globale |
Bucharest BET-NG vs. AROBS TRANSILVANIA SOFTWARE | Bucharest BET-NG vs. Digi Communications NV | Bucharest BET-NG vs. IHUNT TECHNOLOGY IMPORT EXPORT | Bucharest BET-NG vs. TRANSILVANIA LEASING SI |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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