Correlation Between Copenhagen Capital and LUXOR-B
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By analyzing existing cross correlation between Copenhagen Capital AS and Investeringsselskabet Luxor AS, you can compare the effects of market volatilities on Copenhagen Capital 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 Copenhagen Capital with a short position of LUXOR-B. Check out your portfolio center. Please also check ongoing floating volatility patterns of Copenhagen Capital and LUXOR-B.
Diversification Opportunities for Copenhagen Capital and LUXOR-B
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Copenhagen and LUXOR-B is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Copenhagen Capital AS and Investeringsselskabet Luxor AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investeringsselskabet and Copenhagen Capital 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 Copenhagen Capital AS 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 Copenhagen Capital i.e., Copenhagen Capital and LUXOR-B go up and down completely randomly.
Pair Corralation between Copenhagen Capital and LUXOR-B
Assuming the 90 days trading horizon Copenhagen Capital AS is expected to generate 0.56 times more return on investment than LUXOR-B. However, Copenhagen Capital AS is 1.79 times less risky than LUXOR-B. It trades about -0.03 of its potential returns per unit of risk. Investeringsselskabet Luxor AS is currently generating about -0.07 per unit of risk. If you would invest 510.00 in Copenhagen Capital AS on August 28, 2024 and sell it today you would lose (5.00) from holding Copenhagen Capital AS or give up 0.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Copenhagen Capital AS vs. Investeringsselskabet Luxor AS
Performance |
| Timeline |
| Copenhagen Capital |
| Investeringsselskabet |
Copenhagen Capital and LUXOR-B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Copenhagen Capital and LUXOR-B
The main advantage of trading using opposite Copenhagen Capital and LUXOR-B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Copenhagen Capital 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.| Copenhagen Capital vs. SKAKO AS | Copenhagen Capital vs. Agat Ejendomme AS | Copenhagen Capital vs. Prime Office AS | Copenhagen Capital vs. Cemat 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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