Correlation Between OMX Copenhagen and Laan Spar
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By analyzing existing cross correlation between OMX Copenhagen All and Laan Spar Bank, you can compare the effects of market volatilities on OMX Copenhagen and Laan Spar 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 Laan Spar. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Copenhagen and Laan Spar.
Diversification Opportunities for OMX Copenhagen and Laan Spar
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between OMX and Laan is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding OMX Copenhagen All and Laan Spar Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Laan Spar Bank 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 Laan Spar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Laan Spar Bank has no effect on the direction of OMX Copenhagen i.e., OMX Copenhagen and Laan Spar go up and down completely randomly.
Pair Corralation between OMX Copenhagen and Laan Spar
Assuming the 90 days trading horizon OMX Copenhagen is expected to generate 57.71 times less return on investment than Laan Spar. In addition to that, OMX Copenhagen is 1.64 times more volatile than Laan Spar Bank. It trades about 0.0 of its total potential returns per unit of risk. Laan Spar Bank is currently generating about 0.17 per unit of volatility. If you would invest 70,000 in Laan Spar Bank on February 2, 2024 and sell it today you would earn a total of 1,500 from holding Laan Spar Bank or generate 2.14% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 95.65% |
Values | Daily Returns |
OMX Copenhagen All vs. Laan Spar Bank
Performance |
Timeline |
OMX Copenhagen and Laan Spar Volatility Contrast
Predicted Return Density |
Returns |
OMX Copenhagen All
Pair trading matchups for OMX Copenhagen
Laan Spar Bank
Pair trading matchups for Laan Spar
Pair Trading with OMX Copenhagen and Laan Spar
The main advantage of trading using opposite OMX Copenhagen and Laan Spar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Copenhagen position performs unexpectedly, Laan Spar 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 Laan Spar will offset losses from the drop in Laan Spar's long position.OMX Copenhagen vs. Nordea Bank Abp | OMX Copenhagen vs. Groenlandsbanken AS | OMX Copenhagen vs. Carnegie Wealth Management | 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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