Pair Correlation Between NQTH and OMX COPENHAGEN

This module allows you to analyze existing cross correlation between NQTH and OMX COPENHAGEN. You can compare the effects of market volatilities on NQTH 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 NQTH with a short position of OMX COPENHAGEN. See also your portfolio center. Please also check ongoing floating volatility patterns of NQTH and OMX COPENHAGEN.
 Time Horizon     30 Days    Login   to change
Symbolsvs
 NQTH  vs   OMX COPENHAGEN
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, NQTH is expected to under-perform the OMX COPENHAGEN. But the index apears to be less risky and, when comparing its historical volatility, NQTH is 1.3 times less risky than OMX COPENHAGEN. The index trades about -0.1 of its potential returns per unit of risk. The OMX COPENHAGEN is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest  137,781  in OMX COPENHAGEN on January 26, 2018 and sell it today you would lose (1,814)  from holding OMX COPENHAGEN or give up 1.32% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between NQTH and OMX COPENHAGEN
0.57

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Diversification

Very weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding NQTH and OMX COPENHAGEN in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on OMX COPENHAGEN and NQTH 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 NQTH 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 NQTH i.e. NQTH and OMX COPENHAGEN go up and down completely randomly.
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Comparative Volatility

 Predicted Return Density 
      Returns