Correlation Between OMX Copenhagen and Karachi 100
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By analyzing existing cross correlation between OMX Copenhagen All and Karachi 100, you can compare the effects of market volatilities on OMX Copenhagen and Karachi 100 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 Karachi 100. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Copenhagen and Karachi 100.
Diversification Opportunities for OMX Copenhagen and Karachi 100
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between OMX and Karachi is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding OMX Copenhagen All and Karachi 100 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Karachi 100 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 Karachi 100. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Karachi 100 has no effect on the direction of OMX Copenhagen i.e., OMX Copenhagen and Karachi 100 go up and down completely randomly.
Pair Corralation between OMX Copenhagen and Karachi 100
Assuming the 90 days trading horizon OMX Copenhagen is expected to generate 4.01 times less return on investment than Karachi 100. In addition to that, OMX Copenhagen is 1.52 times more volatile than Karachi 100. It trades about 0.08 of its total potential returns per unit of risk. Karachi 100 is currently generating about 0.49 per unit of volatility. If you would invest 5,987,296 in Karachi 100 on February 16, 2024 and sell it today you would earn a total of 1,488,665 from holding Karachi 100 or generate 24.86% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
OMX Copenhagen All vs. Karachi 100
Performance |
Timeline |
OMX Copenhagen and Karachi 100 Volatility Contrast
Predicted Return Density |
Returns |
OMX Copenhagen All
Pair trading matchups for OMX Copenhagen
Karachi 100
Pair trading matchups for Karachi 100
Pair Trading with OMX Copenhagen and Karachi 100
The main advantage of trading using opposite OMX Copenhagen and Karachi 100 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Copenhagen position performs unexpectedly, Karachi 100 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 Karachi 100 will offset losses from the drop in Karachi 100's long position.OMX Copenhagen vs. Skjern Bank AS | OMX Copenhagen vs. Kreditbanken AS | OMX Copenhagen vs. NTG Nordic Transport | OMX Copenhagen vs. BankInvest Value Globale |
Karachi 100 vs. Engro Polymer Chemicals | Karachi 100 vs. Meezan Bank | Karachi 100 vs. Honda Atlas Cars | Karachi 100 vs. Pakistan Tobacco |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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