This module allows you to analyze existing cross correlation between OMX COPENHAGEN and Shanghai. You can compare the effects of market volatilities on OMX COPENHAGEN and Shanghai 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 Shanghai. See also your portfolio center. Please also check ongoing floating volatility patterns of OMX COPENHAGEN and Shanghai.
|Horizon||30 Days Login to change|
Predicted Return Density
OMX COPENHAGEN vs. Shanghai
Assuming 30 trading days horizon, OMX COPENHAGEN is expected to generate 1.49 times more return on investment than Shanghai. However, OMX COPENHAGEN is 1.49 times more volatile than Shanghai. It trades about 0.02 of its potential returns per unit of risk. Shanghai is currently generating about 0.0 per unit of risk. If you would invest 144,997 in OMX COPENHAGEN on September 23, 2019 and sell it today you would earn a total of 1,165 from holding OMX COPENHAGEN or generate 0.8% return on investment over 30 days.
Pair Corralation between OMX COPENHAGEN and Shanghai
|Time Period||3 Months [change]|
Diversification Opportunities for OMX COPENHAGEN and Shanghai
Overlapping area represents the amount of risk that can be diversified away by holding OMX COPENHAGEN and Shanghai in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Shanghai 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 Shanghai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai has no effect on the direction of OMX COPENHAGEN i.e. OMX COPENHAGEN and Shanghai go up and down completely randomly.
See also your portfolio center. Please also try Analyst Recommendations module to analyst recommendations and target price estimates broken down by several categories.