Correlation Between LUXOR-B and Carlsberg
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By analyzing existing cross correlation between Investeringsselskabet Luxor AS and Carlsberg AS, you can compare the effects of market volatilities on LUXOR-B and Carlsberg 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 Carlsberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of LUXOR-B and Carlsberg.
Diversification Opportunities for LUXOR-B and Carlsberg
Very good diversification
The 3 months correlation between LUXOR-B and Carlsberg is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Investeringsselskabet Luxor AS and Carlsberg AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carlsberg 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 Carlsberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carlsberg AS has no effect on the direction of LUXOR-B i.e., LUXOR-B and Carlsberg go up and down completely randomly.
Pair Corralation between LUXOR-B and Carlsberg
Assuming the 90 days trading horizon Investeringsselskabet Luxor AS is expected to under-perform the Carlsberg. In addition to that, LUXOR-B is 1.05 times more volatile than Carlsberg AS. It trades about -0.02 of its total potential returns per unit of risk. Carlsberg AS is currently generating about -0.02 per unit of volatility. If you would invest 117,707 in Carlsberg AS on November 9, 2024 and sell it today you would lose (32,307) from holding Carlsberg AS or give up 27.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Investeringsselskabet Luxor AS vs. Carlsberg AS
Performance |
| Timeline |
| Investeringsselskabet |
| Carlsberg AS |
LUXOR-B and Carlsberg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LUXOR-B and Carlsberg
The main advantage of trading using opposite LUXOR-B and Carlsberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LUXOR-B position performs unexpectedly, Carlsberg 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 Carlsberg will offset losses from the drop in Carlsberg'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 |
| Carlsberg vs. AP Mller | Carlsberg vs. ROCKWOOL International AS | Carlsberg vs. Royal Unibrew AS | Carlsberg vs. Tryg 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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