Correlation Between Austrian Traded and OMX Copenhagen
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By analyzing existing cross correlation between Austrian Traded Index and OMX Copenhagen All, you can compare the effects of market volatilities on Austrian Traded 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 Austrian Traded with a short position of OMX Copenhagen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austrian Traded and OMX Copenhagen.
Diversification Opportunities for Austrian Traded and OMX Copenhagen
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Austrian and OMX is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Austrian Traded Index 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 Austrian Traded 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 Austrian Traded Index 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 Austrian Traded i.e., Austrian Traded and OMX Copenhagen go up and down completely randomly.
Pair Corralation between Austrian Traded and OMX Copenhagen
Assuming the 90 days trading horizon Austrian Traded is expected to generate 1.77 times less return on investment than OMX Copenhagen. But when comparing it to its historical volatility, Austrian Traded Index is 1.82 times less risky than OMX Copenhagen. It trades about 0.03 of its potential returns per unit of risk. OMX Copenhagen All is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 184,223 in OMX Copenhagen All on January 30, 2024 and sell it today you would earn a total of 950.00 from holding OMX Copenhagen All or generate 0.52% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Austrian Traded Index vs. OMX Copenhagen All
Performance |
Timeline |
Austrian Traded and OMX Copenhagen Volatility Contrast
Predicted Return Density |
Returns |
Austrian Traded Index
Pair trading matchups for Austrian Traded
OMX Copenhagen All
Pair trading matchups for OMX Copenhagen
Pair Trading with Austrian Traded and OMX Copenhagen
The main advantage of trading using opposite Austrian Traded and OMX Copenhagen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austrian Traded 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.Austrian Traded vs. Addiko Bank AG | Austrian Traded vs. Wiener Privatbank SE | Austrian Traded vs. Universal Music Group | Austrian Traded vs. Vienna Insurance Group |
OMX Copenhagen vs. Laan Spar Bank | OMX Copenhagen vs. Skjern Bank AS | OMX Copenhagen vs. Kreditbanken AS | OMX Copenhagen vs. Groenlandsbanken 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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