Correlation Between LUXOR-B and BankInvest Optima
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By analyzing existing cross correlation between Investeringsselskabet Luxor AS and BankInvest Optima 30, you can compare the effects of market volatilities on LUXOR-B and BankInvest Optima 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 BankInvest Optima. Check out your portfolio center. Please also check ongoing floating volatility patterns of LUXOR-B and BankInvest Optima.
Diversification Opportunities for LUXOR-B and BankInvest Optima
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between LUXOR-B and BankInvest is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Investeringsselskabet Luxor AS and BankInvest Optima 30 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BankInvest Optima 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 BankInvest Optima. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BankInvest Optima has no effect on the direction of LUXOR-B i.e., LUXOR-B and BankInvest Optima go up and down completely randomly.
Pair Corralation between LUXOR-B and BankInvest Optima
Assuming the 90 days trading horizon Investeringsselskabet Luxor AS is expected to under-perform the BankInvest Optima. In addition to that, LUXOR-B is 5.18 times more volatile than BankInvest Optima 30. It trades about -0.29 of its total potential returns per unit of risk. BankInvest Optima 30 is currently generating about -0.12 per unit of volatility. If you would invest 11,110 in BankInvest Optima 30 on November 27, 2024 and sell it today you would lose (220.00) from holding BankInvest Optima 30 or give up 1.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Investeringsselskabet Luxor AS vs. BankInvest Optima 30
Performance |
| Timeline |
| Investeringsselskabet |
| BankInvest Optima |
LUXOR-B and BankInvest Optima Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LUXOR-B and BankInvest Optima
The main advantage of trading using opposite LUXOR-B and BankInvest Optima positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LUXOR-B position performs unexpectedly, BankInvest Optima 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 BankInvest Optima will offset losses from the drop in BankInvest Optima'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 |
| BankInvest Optima vs. Nordfyns Bank AS | BankInvest Optima vs. Nordinvestments AS | BankInvest Optima vs. Fynske Bank AS | BankInvest Optima vs. TROPHY GAMES Development |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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