Correlation Between LUXOR-B and Ambu AS
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By analyzing existing cross correlation between Investeringsselskabet Luxor AS and Ambu AS, you can compare the effects of market volatilities on LUXOR-B and Ambu AS 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 Ambu AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of LUXOR-B and Ambu AS.
Diversification Opportunities for LUXOR-B and Ambu AS
Good diversification
The 3 months correlation between LUXOR-B and Ambu is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Investeringsselskabet Luxor AS and Ambu AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ambu 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 Ambu AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ambu AS has no effect on the direction of LUXOR-B i.e., LUXOR-B and Ambu AS go up and down completely randomly.
Pair Corralation between LUXOR-B and Ambu AS
Assuming the 90 days trading horizon Investeringsselskabet Luxor AS is expected to generate 0.72 times more return on investment than Ambu AS. However, Investeringsselskabet Luxor AS is 1.38 times less risky than Ambu AS. It trades about 0.03 of its potential returns per unit of risk. Ambu AS is currently generating about -0.11 per unit of risk. If you would invest 54,500 in Investeringsselskabet Luxor AS on August 28, 2024 and sell it today you would earn a total of 1,500 from holding Investeringsselskabet Luxor AS or generate 2.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Investeringsselskabet Luxor AS vs. Ambu AS
Performance |
| Timeline |
| Investeringsselskabet |
| Ambu AS |
LUXOR-B and Ambu AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LUXOR-B and Ambu AS
The main advantage of trading using opposite LUXOR-B and Ambu AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LUXOR-B position performs unexpectedly, Ambu AS 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 Ambu AS will offset losses from the drop in Ambu AS'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 |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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