Correlation Between OMX Copenhagen and KL Technology
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By analyzing existing cross correlation between OMX Copenhagen All and KL Technology, you can compare the effects of market volatilities on OMX Copenhagen and KL Technology 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 KL Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Copenhagen and KL Technology.
Diversification Opportunities for OMX Copenhagen and KL Technology
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between OMX and KLTE is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding OMX Copenhagen All and KL Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KL Technology 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 KL Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KL Technology has no effect on the direction of OMX Copenhagen i.e., OMX Copenhagen and KL Technology go up and down completely randomly.
Pair Corralation between OMX Copenhagen and KL Technology
Assuming the 90 days trading horizon OMX Copenhagen All is expected to generate 1.14 times more return on investment than KL Technology. However, OMX Copenhagen is 1.14 times more volatile than KL Technology. It trades about 0.03 of its potential returns per unit of risk. KL Technology is currently generating about -0.04 per unit of risk. 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 | Very Weak |
Accuracy | 95.0% |
Values | Daily Returns |
OMX Copenhagen All vs. KL Technology
Performance |
Timeline |
OMX Copenhagen and KL Technology Volatility Contrast
Predicted Return Density |
Returns |
OMX Copenhagen All
Pair trading matchups for OMX Copenhagen
KL Technology
Pair trading matchups for KL Technology
Pair Trading with OMX Copenhagen and KL Technology
The main advantage of trading using opposite OMX Copenhagen and KL Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Copenhagen position performs unexpectedly, KL Technology 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 KL Technology will offset losses from the drop in KL Technology's long position.OMX Copenhagen vs. Laan Spar Bank | OMX Copenhagen vs. Skjern Bank AS | OMX Copenhagen vs. Kreditbanken AS | OMX Copenhagen vs. Groenlandsbanken AS |
KL Technology vs. Melewar Industrial Group | KL Technology vs. CB Industrial Product | KL Technology vs. Uchi Technologies Bhd | KL Technology vs. Sapura Industrial Bhd |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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