Correlation Between LUXOR-B and Alefarm Brewing
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By analyzing existing cross correlation between Investeringsselskabet Luxor AS and Alefarm Brewing AS, you can compare the effects of market volatilities on LUXOR-B and Alefarm Brewing 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 LUXOR-B with a short position of Alefarm Brewing. Check out your portfolio center. Please also check ongoing floating volatility patterns of LUXOR-B and Alefarm Brewing.
Diversification Opportunities for LUXOR-B and Alefarm Brewing
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between LUXOR-B and Alefarm is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Investeringsselskabet Luxor AS and Alefarm Brewing AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alefarm Brewing AS and LUXOR-B 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 Investeringsselskabet Luxor AS are associated (or correlated) with Alefarm Brewing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alefarm Brewing AS has no effect on the direction of LUXOR-B i.e., LUXOR-B and Alefarm Brewing go up and down completely randomly.
Pair Corralation between LUXOR-B and Alefarm Brewing
Assuming the 90 days trading horizon Investeringsselskabet Luxor AS is expected to under-perform the Alefarm Brewing. But the stock apears to be less risky and, when comparing its historical volatility, Investeringsselskabet Luxor AS is 2.54 times less risky than Alefarm Brewing. The stock trades about -0.01 of its potential returns per unit of risk. The Alefarm Brewing AS is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 239.00 in Alefarm Brewing AS on October 25, 2024 and sell it today you would lose (89.00) from holding Alefarm Brewing AS or give up 37.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Investeringsselskabet Luxor AS vs. Alefarm Brewing AS
Performance |
| Timeline |
| Investeringsselskabet |
| Alefarm Brewing AS |
LUXOR-B and Alefarm Brewing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LUXOR-B and Alefarm Brewing
The main advantage of trading using opposite LUXOR-B and Alefarm Brewing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LUXOR-B position performs unexpectedly, Alefarm Brewing 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 Alefarm Brewing will offset losses from the drop in Alefarm Brewing's long position.| LUXOR-B vs. Skjern Bank AS | LUXOR-B vs. Groenlandsbanken AS | LUXOR-B vs. Fynske Bank AS | LUXOR-B vs. Lollands Bank |
| Alefarm Brewing vs. Sparinvest INDEX Globale | Alefarm Brewing vs. Bavarian Nordic | Alefarm Brewing vs. Nordea Invest Global | Alefarm Brewing vs. Investeringsselskabet Luxor AS |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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