This module allows you to analyze existing cross correlation between DAX and OMX COPENHAGEN. You can compare the effects of market volatilities on DAX 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 DAX with a short position of OMX COPENHAGEN. See also your portfolio center. Please also check ongoing floating volatility patterns of DAX and OMX COPENHAGEN.
|Horizon||30 Days Login to change|
Predicted Return Density
DAX vs. OMX COPENHAGEN
Assuming 30 trading days horizon, DAX is expected to generate 1.11 times more return on investment than OMX COPENHAGEN. However, DAX is 1.11 times more volatile than OMX COPENHAGEN. It trades about 0.02 of its potential returns per unit of risk. OMX COPENHAGEN is currently generating about 0.0 per unit of risk. If you would invest 1,238,734 in DAX on September 13, 2019 and sell it today you would earn a total of 12,431 from holding DAX or generate 1.0% return on investment over 30 days.
Pair Corralation between DAX and OMX COPENHAGEN
|Time Period||3 Months [change]|
Diversification Opportunities for DAX and OMX COPENHAGEN
Very weak diversification
Overlapping area represents the amount of risk that can be diversified away by holding DAX and OMX COPENHAGEN in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on OMX COPENHAGEN and DAX 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 DAX 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 has no effect on the direction of DAX i.e. DAX and OMX COPENHAGEN go up and down completely randomly.
See also your portfolio center. Please also try Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .