Pair Correlation Between OMX COPENHAGEN and IPC

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

Pair Volatility

Assuming 30 trading days horizon, OMX COPENHAGEN is expected to generate 1.06 times less return on investment than IPC. But when comparing it to its historical volatility, OMX COPENHAGEN is 1.76 times less risky than IPC. It trades about 0.27 of its potential returns per unit of risk. IPC is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  4,863,454  in IPC on December 18, 2017 and sell it today you would earn a total of  109,776  from holding IPC or generate 2.26% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between OMX COPENHAGEN and IPC
0.66

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthSignificant
Accuracy95.24%
ValuesDaily Returns

Diversification

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding OMX COPENHAGEN and IPC in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on IPC 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 are associated (or correlated) with IPC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IPC has no effect on the direction of OMX COPENHAGEN i.e. OMX COPENHAGEN and IPC go up and down completely randomly.
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Comparative Volatility

 Predicted Return Density 
      Returns