Correlation Between OMX Copenhagen and Cboe UK
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By analyzing existing cross correlation between OMX Copenhagen All and Cboe UK Consumer, you can compare the effects of market volatilities on OMX Copenhagen and Cboe UK 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 Cboe UK. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Copenhagen and Cboe UK.
Diversification Opportunities for OMX Copenhagen and Cboe UK
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between OMX and Cboe is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding OMX Copenhagen All and Cboe UK Consumer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cboe UK Consumer 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 Cboe UK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cboe UK Consumer has no effect on the direction of OMX Copenhagen i.e., OMX Copenhagen and Cboe UK go up and down completely randomly.
Pair Corralation between OMX Copenhagen and Cboe UK
Assuming the 90 days trading horizon OMX Copenhagen All is expected to generate 1.34 times more return on investment than Cboe UK. However, OMX Copenhagen is 1.34 times more volatile than Cboe UK Consumer. It trades about 0.05 of its potential returns per unit of risk. Cboe UK Consumer is currently generating about -0.18 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 1,822 from holding OMX Copenhagen All or generate 0.99% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
OMX Copenhagen All vs. Cboe UK Consumer
Performance |
Timeline |
OMX Copenhagen and Cboe UK Volatility Contrast
Predicted Return Density |
Returns |
OMX Copenhagen All
Pair trading matchups for OMX Copenhagen
Cboe UK Consumer
Pair trading matchups for Cboe UK
Pair Trading with OMX Copenhagen and Cboe UK
The main advantage of trading using opposite OMX Copenhagen and Cboe UK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Copenhagen position performs unexpectedly, Cboe UK 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 Cboe UK will offset losses from the drop in Cboe UK's long position.OMX Copenhagen vs. BankInvestEuropiske Akt Ansv | OMX Copenhagen vs. Nordea Bank Abp | OMX Copenhagen vs. Groenlandsbanken AS | OMX Copenhagen vs. Carnegie Wealth Management |
Cboe UK vs. Cairo Communication SpA | Cboe UK vs. Zegona Communications Plc | Cboe UK vs. British American Tobacco | Cboe UK vs. Fonix Mobile plc |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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