Correlation Between Swiss Leader and OMX Copenhagen
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By analyzing existing cross correlation between Swiss Leader Price and OMX Copenhagen All, you can compare the effects of market volatilities on Swiss Leader 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 Swiss Leader with a short position of OMX Copenhagen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swiss Leader and OMX Copenhagen.
Diversification Opportunities for Swiss Leader and OMX Copenhagen
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Swiss and OMX is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Swiss Leader Price 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 Swiss Leader 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 Swiss Leader Price 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 Swiss Leader i.e., Swiss Leader and OMX Copenhagen go up and down completely randomly.
Pair Corralation between Swiss Leader and OMX Copenhagen
Assuming the 90 days trading horizon Swiss Leader Price is expected to under-perform the OMX Copenhagen. But the index apears to be less risky and, when comparing its historical volatility, Swiss Leader Price is 1.29 times less risky than OMX Copenhagen. The index trades about -0.15 of its potential returns per unit of risk. The 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 | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Swiss Leader Price vs. OMX Copenhagen All
Performance |
Timeline |
Swiss Leader and OMX Copenhagen Volatility Contrast
Predicted Return Density |
Returns |
Swiss Leader Price
Pair trading matchups for Swiss Leader
OMX Copenhagen All
Pair trading matchups for OMX Copenhagen
Pair Trading with Swiss Leader and OMX Copenhagen
The main advantage of trading using opposite Swiss Leader and OMX Copenhagen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swiss Leader 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.Swiss Leader vs. St Galler Kantonalbank | Swiss Leader vs. Zurich Insurance Group | Swiss Leader vs. Luzerner Kantonalbank AG |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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