VWDRY (US dollars) = VWS.CO (Euros) * adr_to_ord_ratio * fx_rate
adr_to_ord_ratio is the number (or fraction) of shares represented by each ADR
fx_rate is the currency exchange rate
If a significant move happens in Europe, prior to the US open, it should be reflected in the opening price in the US.
If a significant move happens in the US after Copenhagen has closed, it should be reflected the following trading day.
The markets are efficient enough that trading costs would exceed any arbitrage profits.
More specifically, How are time difference managed. I own Vesta s (VWDRY on the NYE) however I've noticed that VWS.CO (the same company) is traded on the Copenhagen exchange. Also, I've noticed that VWDRY mirrors what happened 6 hours earlier with VWS.CO. Why is this and are there ways to take advantage of this?
