Correlation Between Fast Ejendom and LUXOR-B
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By analyzing existing cross correlation between Fast Ejendom and Investeringsselskabet Luxor AS, you can compare the effects of market volatilities on Fast Ejendom 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 Fast Ejendom with a short position of LUXOR-B. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fast Ejendom and LUXOR-B.
Diversification Opportunities for Fast Ejendom and LUXOR-B
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fast and LUXOR-B is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Fast Ejendom and Investeringsselskabet Luxor AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investeringsselskabet and Fast Ejendom 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 Fast Ejendom 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 Fast Ejendom i.e., Fast Ejendom and LUXOR-B go up and down completely randomly.
Pair Corralation between Fast Ejendom and LUXOR-B
Assuming the 90 days trading horizon Fast Ejendom is expected to generate 0.66 times more return on investment than LUXOR-B. However, Fast Ejendom is 1.51 times less risky than LUXOR-B. It trades about 0.01 of its potential returns per unit of risk. Investeringsselskabet Luxor AS is currently generating about -0.17 per unit of risk. If you would invest 11,800 in Fast Ejendom on November 4, 2024 and sell it today you would earn a total of 0.00 from holding Fast Ejendom or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fast Ejendom vs. Investeringsselskabet Luxor AS
Performance |
| Timeline |
| Fast Ejendom |
| Investeringsselskabet |
Fast Ejendom and LUXOR-B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fast Ejendom and LUXOR-B
The main advantage of trading using opposite Fast Ejendom and LUXOR-B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fast Ejendom 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.| Fast Ejendom vs. Prime Office AS | Fast Ejendom vs. First Farms AS | Fast Ejendom vs. Jeudan | Fast Ejendom vs. Gabriel Holding |
| 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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