Correlation Between PF Atlantic and LUXOR-B
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By analyzing existing cross correlation between PF Atlantic Petroleum and Investeringsselskabet Luxor AS, you can compare the effects of market volatilities on PF Atlantic and LUXOR-B 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 PF Atlantic with a short position of LUXOR-B. Check out your portfolio center. Please also check ongoing floating volatility patterns of PF Atlantic and LUXOR-B.
Diversification Opportunities for PF Atlantic and LUXOR-B
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ATLA-DKK and LUXOR-B is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding PF Atlantic Petroleum and Investeringsselskabet Luxor AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investeringsselskabet and PF Atlantic 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 PF Atlantic Petroleum are associated (or correlated) with LUXOR-B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investeringsselskabet has no effect on the direction of PF Atlantic i.e., PF Atlantic and LUXOR-B go up and down completely randomly.
Pair Corralation between PF Atlantic and LUXOR-B
Assuming the 90 days trading horizon PF Atlantic is expected to generate 2.35 times less return on investment than LUXOR-B. In addition to that, PF Atlantic is 2.98 times more volatile than Investeringsselskabet Luxor AS. It trades about 0.02 of its total potential returns per unit of risk. Investeringsselskabet Luxor AS is currently generating about 0.17 per unit of volatility. If you would invest 58,000 in Investeringsselskabet Luxor AS on October 25, 2024 and sell it today you would earn a total of 14,500 from holding Investeringsselskabet Luxor AS or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.33% |
| Values | Daily Returns |
PF Atlantic Petroleum vs. Investeringsselskabet Luxor AS
Performance |
| Timeline |
| PF Atlantic Petroleum |
| Investeringsselskabet |
PF Atlantic and LUXOR-B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PF Atlantic and LUXOR-B
The main advantage of trading using opposite PF Atlantic and LUXOR-B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PF Atlantic position performs unexpectedly, LUXOR-B 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 LUXOR-B will offset losses from the drop in LUXOR-B's long position.| PF Atlantic vs. BioPorto | PF Atlantic vs. cBrain AS | PF Atlantic vs. TORM plc | PF Atlantic vs. Zealand Pharma AS |
| LUXOR-B vs. Skjern Bank AS | LUXOR-B vs. Groenlandsbanken AS | LUXOR-B vs. Fynske Bank AS | LUXOR-B vs. Lollands Bank |
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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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