Correlation Between Cboe UK and OMX Helsinki
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By analyzing existing cross correlation between Cboe UK Consumer and OMX Helsinki 25, you can compare the effects of market volatilities on Cboe UK and OMX Helsinki 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 Cboe UK with a short position of OMX Helsinki. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cboe UK and OMX Helsinki.
Diversification Opportunities for Cboe UK and OMX Helsinki
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cboe and OMX is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Cboe UK Consumer and OMX Helsinki 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OMX Helsinki 25 and Cboe UK 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 Cboe UK Consumer are associated (or correlated) with OMX Helsinki. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OMX Helsinki 25 has no effect on the direction of Cboe UK i.e., Cboe UK and OMX Helsinki go up and down completely randomly.
Pair Corralation between Cboe UK and OMX Helsinki
Assuming the 90 days trading horizon Cboe UK Consumer is expected to under-perform the OMX Helsinki. But the index apears to be less risky and, when comparing its historical volatility, Cboe UK Consumer is 1.06 times less risky than OMX Helsinki. The index trades about -0.14 of its potential returns per unit of risk. The OMX Helsinki 25 is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 437,675 in OMX Helsinki 25 on January 30, 2024 and sell it today you would earn a total of 6,847 from holding OMX Helsinki 25 or generate 1.56% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Cboe UK Consumer vs. OMX Helsinki 25
Performance |
Timeline |
Cboe UK and OMX Helsinki Volatility Contrast
Predicted Return Density |
Returns |
Cboe UK Consumer
Pair trading matchups for Cboe UK
OMX Helsinki 25
Pair trading matchups for OMX Helsinki
Pair Trading with Cboe UK and OMX Helsinki
The main advantage of trading using opposite Cboe UK and OMX Helsinki positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cboe UK position performs unexpectedly, OMX Helsinki 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 Helsinki will offset losses from the drop in OMX Helsinki's long position.Cboe UK vs. Tata Steel Limited | Cboe UK vs. Hilton Food Group | Cboe UK vs. Edita Food Industries | Cboe UK vs. Impax Environmental Markets |
OMX Helsinki vs. Detection Technology OY | OMX Helsinki vs. SSH Communications Security | OMX Helsinki vs. Alandsbanken Abp A | OMX Helsinki vs. QPR Software Oyj |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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