Correlation Between ICEX Main and OMX Copenhagen
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By analyzing existing cross correlation between ICEX Main and OMX Copenhagen All, you can compare the effects of market volatilities on ICEX Main 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 ICEX Main with a short position of OMX Copenhagen. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICEX Main and OMX Copenhagen.
Diversification Opportunities for ICEX Main and OMX Copenhagen
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ICEX and OMX is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding ICEX Main 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 ICEX Main 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 ICEX Main 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 ICEX Main i.e., ICEX Main and OMX Copenhagen go up and down completely randomly.
Pair Corralation between ICEX Main and OMX Copenhagen
Assuming the 90 days trading horizon ICEX Main is expected to generate 0.66 times more return on investment than OMX Copenhagen. However, ICEX Main is 1.51 times less risky than OMX Copenhagen. It trades about 0.35 of its potential returns per unit of risk. OMX Copenhagen All is currently generating about 0.03 per unit of risk. If you would invest 202,485 in ICEX Main on January 30, 2024 and sell it today you would earn a total of 8,805 from holding ICEX Main or generate 4.35% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 95.0% |
Values | Daily Returns |
ICEX Main vs. OMX Copenhagen All
Performance |
Timeline |
ICEX Main and OMX Copenhagen Volatility Contrast
Predicted Return Density |
Returns |
ICEX Main
Pair trading matchups for ICEX Main
OMX Copenhagen All
Pair trading matchups for OMX Copenhagen
Pair Trading with ICEX Main and OMX Copenhagen
The main advantage of trading using opposite ICEX Main and OMX Copenhagen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICEX Main 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.ICEX Main vs. Icelandair Group hf | ICEX Main vs. Iceland Seafood International | ICEX Main vs. slandsbanki hf | ICEX Main vs. Alvotech |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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