Correlation Between OMX Copenhagen and Dampskibsselskabet
Specify exactly 2 symbols:
By analyzing existing cross correlation between OMX Copenhagen All and Dampskibsselskabet Norden AS, you can compare the effects of market volatilities on OMX Copenhagen and Dampskibsselskabet 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 Dampskibsselskabet. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Copenhagen and Dampskibsselskabet.
Diversification Opportunities for OMX Copenhagen and Dampskibsselskabet
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between OMX and Dampskibsselskabet is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding OMX Copenhagen All and Dampskibsselskabet Norden AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dampskibsselskabet 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 Dampskibsselskabet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dampskibsselskabet has no effect on the direction of OMX Copenhagen i.e., OMX Copenhagen and Dampskibsselskabet go up and down completely randomly.
Pair Corralation between OMX Copenhagen and Dampskibsselskabet
Assuming the 90 days trading horizon OMX Copenhagen All is expected to generate 0.63 times more return on investment than Dampskibsselskabet. However, OMX Copenhagen All is 1.6 times less risky than Dampskibsselskabet. It trades about -0.09 of its potential returns per unit of risk. Dampskibsselskabet Norden AS is currently generating about -0.15 per unit of risk. If you would invest 188,442 in OMX Copenhagen All on September 8, 2024 and sell it today you would lose (13,481) from holding OMX Copenhagen All or give up 7.15% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
OMX Copenhagen All vs. Dampskibsselskabet Norden AS
Performance |
Timeline |
OMX Copenhagen and Dampskibsselskabet Volatility Contrast
Predicted Return Density |
Returns |
OMX Copenhagen All
Pair trading matchups for OMX Copenhagen
Dampskibsselskabet Norden AS
Pair trading matchups for Dampskibsselskabet
Pair Trading with OMX Copenhagen and Dampskibsselskabet
The main advantage of trading using opposite OMX Copenhagen and Dampskibsselskabet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Copenhagen position performs unexpectedly, Dampskibsselskabet 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 Dampskibsselskabet will offset losses from the drop in Dampskibsselskabet's long position.OMX Copenhagen vs. Prime Office AS | OMX Copenhagen vs. NTG Nordic Transport | OMX Copenhagen vs. Lollands Bank | OMX Copenhagen vs. Danske Andelskassers Bank |
Dampskibsselskabet vs. TORM plc | Dampskibsselskabet vs. FLSmidth Co | Dampskibsselskabet vs. NKT AS | Dampskibsselskabet vs. ALK Abell 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |