Correlation Between OMX Copenhagen and Nordea Bank
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By analyzing existing cross correlation between OMX Copenhagen All and Nordea Bank Abp, you can compare the effects of market volatilities on OMX Copenhagen and Nordea Bank 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 Nordea Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Copenhagen and Nordea Bank.
Diversification Opportunities for OMX Copenhagen and Nordea Bank
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between OMX and Nordea is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding OMX Copenhagen All and Nordea Bank Abp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordea Bank Abp 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 Nordea Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordea Bank Abp has no effect on the direction of OMX Copenhagen i.e., OMX Copenhagen and Nordea Bank go up and down completely randomly.
Pair Corralation between OMX Copenhagen and Nordea Bank
Assuming the 90 days trading horizon OMX Copenhagen All is expected to under-perform the Nordea Bank. But the index apears to be less risky and, when comparing its historical volatility, OMX Copenhagen All is 1.74 times less risky than Nordea Bank. The index trades about -0.1 of its potential returns per unit of risk. The Nordea Bank Abp is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 7,785 in Nordea Bank Abp on January 26, 2024 and sell it today you would earn a total of 405.00 from holding Nordea Bank Abp or generate 5.2% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
OMX Copenhagen All vs. Nordea Bank Abp
Performance |
Timeline |
OMX Copenhagen and Nordea Bank Volatility Contrast
Predicted Return Density |
Returns |
OMX Copenhagen All
Pair trading matchups for OMX Copenhagen
Nordea Bank Abp
Pair trading matchups for Nordea Bank
Pair Trading with OMX Copenhagen and Nordea Bank
The main advantage of trading using opposite OMX Copenhagen and Nordea Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Copenhagen position performs unexpectedly, Nordea Bank 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 Nordea Bank will offset losses from the drop in Nordea Bank's long position.OMX Copenhagen vs. Dataproces Group AS | OMX Copenhagen vs. Djurslands Bank | OMX Copenhagen vs. Ringkjoebing Landbobank AS | OMX Copenhagen vs. PF BankNordik |
Nordea Bank vs. Jyske Bank AS | Nordea Bank vs. Tryg AS | Nordea Bank vs. Danske Bank AS | Nordea Bank vs. FLSmidth Co |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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