Correlation Between Danske Invest and LUXOR-B
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By analyzing existing cross correlation between Danske Invest Euro and Investeringsselskabet Luxor AS, you can compare the effects of market volatilities on Danske Invest 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 Danske Invest with a short position of LUXOR-B. Check out your portfolio center. Please also check ongoing floating volatility patterns of Danske Invest and LUXOR-B.
Diversification Opportunities for Danske Invest and LUXOR-B
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Danske and LUXOR-B is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Danske Invest Euro and Investeringsselskabet Luxor AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investeringsselskabet and Danske Invest 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 Danske Invest Euro 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 Danske Invest i.e., Danske Invest and LUXOR-B go up and down completely randomly.
Pair Corralation between Danske Invest and LUXOR-B
Assuming the 90 days trading horizon Danske Invest Euro is expected to generate 0.07 times more return on investment than LUXOR-B. However, Danske Invest Euro is 14.76 times less risky than LUXOR-B. It trades about 0.38 of its potential returns per unit of risk. Investeringsselskabet Luxor AS is currently generating about -0.14 per unit of risk. If you would invest 9,934 in Danske Invest Euro on September 13, 2024 and sell it today you would earn a total of 111.00 from holding Danske Invest Euro or generate 1.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Danske Invest Euro vs. Investeringsselskabet Luxor AS
Performance |
| Timeline |
| Danske Invest Euro |
| Investeringsselskabet |
Danske Invest and LUXOR-B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Danske Invest and LUXOR-B
The main advantage of trading using opposite Danske Invest and LUXOR-B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Danske Invest 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.| Danske Invest vs. Novo Nordisk AS | Danske Invest vs. Nordea Bank Abp | Danske Invest vs. DSV Panalpina AS | Danske Invest vs. AP Mller |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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