Correlation Between Lollands Bank and LUXOR-B
Specify exactly 2 symbols:
By analyzing existing cross correlation between Lollands Bank and Investeringsselskabet Luxor AS, you can compare the effects of market volatilities on Lollands Bank 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 Lollands Bank with a short position of LUXOR-B. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lollands Bank and LUXOR-B.
Diversification Opportunities for Lollands Bank and LUXOR-B
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lollands and LUXOR-B is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Lollands Bank and Investeringsselskabet Luxor AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investeringsselskabet and Lollands Bank 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 Lollands Bank 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 Lollands Bank i.e., Lollands Bank and LUXOR-B go up and down completely randomly.
Pair Corralation between Lollands Bank and LUXOR-B
Assuming the 90 days trading horizon Lollands Bank is expected to generate 12.04 times less return on investment than LUXOR-B. But when comparing it to its historical volatility, Lollands Bank is 3.45 times less risky than LUXOR-B. It trades about 0.06 of its potential returns per unit of risk. Investeringsselskabet Luxor AS is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 65,500 in Investeringsselskabet Luxor AS on October 25, 2024 and sell it today you would earn a total of 7,000 from holding Investeringsselskabet Luxor AS or generate 10.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lollands Bank vs. Investeringsselskabet Luxor AS
Performance |
| Timeline |
| Lollands Bank |
| Investeringsselskabet |
Lollands Bank and LUXOR-B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lollands Bank and LUXOR-B
The main advantage of trading using opposite Lollands Bank and LUXOR-B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lollands Bank 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.| Lollands Bank vs. Skjern Bank AS | Lollands Bank vs. Kreditbanken AS | Lollands Bank vs. Djurslands Bank | Lollands Bank vs. Groenlandsbanken 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Global Correlations Find global opportunities by holding instruments from different markets |