Correlation Between Budapest and OMX Copenhagen
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By analyzing existing cross correlation between Budapest SE and OMX Copenhagen All, you can compare the effects of market volatilities on Budapest 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 Budapest with a short position of OMX Copenhagen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Budapest and OMX Copenhagen.
Diversification Opportunities for Budapest and OMX Copenhagen
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Budapest and OMX is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Budapest SE and OMX Copenhagen All in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OMX Copenhagen All and Budapest 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 Budapest SE 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 All has no effect on the direction of Budapest i.e., Budapest and OMX Copenhagen go up and down completely randomly.
Pair Corralation between Budapest and OMX Copenhagen
Assuming the 90 days trading horizon Budapest SE is expected to generate 0.98 times more return on investment than OMX Copenhagen. However, Budapest SE is 1.02 times less risky than OMX Copenhagen. It trades about 0.1 of its potential returns per unit of risk. OMX Copenhagen All is currently generating about -0.06 per unit of risk. If you would invest 6,662,506 in Budapest SE on February 4, 2024 and sell it today you would earn a total of 137,718 from holding Budapest SE or generate 2.07% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 95.65% |
Values | Daily Returns |
Budapest SE vs. OMX Copenhagen All
Performance |
Timeline |
Budapest and OMX Copenhagen Volatility Contrast
Predicted Return Density |
Returns |
Budapest SE
Pair trading matchups for Budapest
OMX Copenhagen All
Pair trading matchups for OMX Copenhagen
Pair Trading with Budapest and OMX Copenhagen
The main advantage of trading using opposite Budapest and OMX Copenhagen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Budapest position performs unexpectedly, OMX Copenhagen 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 OMX Copenhagen will offset losses from the drop in OMX Copenhagen's long position.Budapest vs. Infineon Technologies AG | Budapest vs. Delta Technologies Nyrt | Budapest vs. OTP Bank Nyrt | Budapest vs. Nutex Investments PLC |
OMX Copenhagen vs. Nordinvestments AS | OMX Copenhagen vs. Fynske Bank AS | OMX Copenhagen vs. Moens Bank AS | OMX Copenhagen vs. Prime Office AS |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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