Correlation Between OMX Copenhagen and Vestjysk Bank
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By analyzing existing cross correlation between OMX Copenhagen All and Vestjysk Bank AS, you can compare the effects of market volatilities on OMX Copenhagen and Vestjysk Bank 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 Vestjysk Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Copenhagen and Vestjysk Bank.
Diversification Opportunities for OMX Copenhagen and Vestjysk Bank
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between OMX and Vestjysk is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding OMX Copenhagen All and Vestjysk Bank AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vestjysk Bank AS 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 Vestjysk Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vestjysk Bank AS has no effect on the direction of OMX Copenhagen i.e., OMX Copenhagen and Vestjysk Bank go up and down completely randomly.
Pair Corralation between OMX Copenhagen and Vestjysk Bank
Assuming the 90 days trading horizon OMX Copenhagen All is expected to under-perform the Vestjysk Bank. In addition to that, OMX Copenhagen is 1.24 times more volatile than Vestjysk Bank AS. It trades about -0.07 of its total potential returns per unit of risk. Vestjysk Bank AS is currently generating about -0.01 per unit of volatility. If you would invest 463.00 in Vestjysk Bank AS on February 3, 2024 and sell it today you would lose (1.00) from holding Vestjysk Bank AS or give up 0.22% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
OMX Copenhagen All vs. Vestjysk Bank AS
Performance |
Timeline |
OMX Copenhagen and Vestjysk Bank Volatility Contrast
Predicted Return Density |
Returns |
OMX Copenhagen All
Pair trading matchups for OMX Copenhagen
Vestjysk Bank AS
Pair trading matchups for Vestjysk Bank
Pair Trading with OMX Copenhagen and Vestjysk Bank
The main advantage of trading using opposite OMX Copenhagen and Vestjysk Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Copenhagen position performs unexpectedly, Vestjysk Bank 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 Vestjysk Bank will offset losses from the drop in Vestjysk Bank's long position.OMX Copenhagen vs. Nordfyns Bank AS | OMX Copenhagen vs. Nordinvestments AS | OMX Copenhagen vs. Spar Nord Bank | OMX Copenhagen vs. Fynske Bank AS |
Vestjysk Bank vs. Spar Nord Bank | Vestjysk Bank vs. Sydbank AS | Vestjysk Bank vs. Ringkjoebing Landbobank AS | Vestjysk Bank vs. Alm Brand |
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 Stocks Directory module to find actively traded stocks across global markets.
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