- Companies in United States
- Peer Analysis
This module allows you to analyze existing cross correlation between DOW and OMX COPENHAGEN. You can compare the effects of market volatilities on DOW 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 DOW with a short position of OMX COPENHAGEN. See also your portfolio center. Please also check ongoing floating volatility patterns of DOW and OMX COPENHAGEN.
|Horizon||30 Days Login to change|
Predicted Return Density
DOW vs. OMX COPENHAGEN
Given the investment horizon of 30 days, DOW is expected to generate 1.93 times more return on investment than OMX COPENHAGEN. However, DOW is 1.93 times more volatile than OMX COPENHAGEN. It trades about 0.15 of its potential returns per unit of risk. OMX COPENHAGEN is currently generating about 0.18 per unit of risk. If you would invest 2,332,366 in DOW on January 18, 2019 and sell it today you would earn a total of 255,959 from holding DOW or generate 10.97% return on investment over 30 days.
Pair Corralation between DOW and OMX COPENHAGEN
|Time Period||2 Months [change]|
Diversification Opportunities for DOW and OMX COPENHAGEN
Very poor diversification
Overlapping area represents the amount of risk that can be diversified away by holding DOW and OMX COPENHAGEN in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on OMX COPENHAGEN and DOW 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 DOW 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 DOW i.e. DOW and OMX COPENHAGEN go up and down completely randomly.