Correlation Between LUXOR-B and Danske Invest
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By analyzing existing cross correlation between Investeringsselskabet Luxor AS and Danske Invest Euro, you can compare the effects of market volatilities on LUXOR-B and Danske Invest 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 Danske Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of LUXOR-B and Danske Invest.
Diversification Opportunities for LUXOR-B and Danske Invest
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between LUXOR-B and Danske is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Investeringsselskabet Luxor AS and Danske Invest Euro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Danske Invest Euro 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 Danske Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Danske Invest Euro has no effect on the direction of LUXOR-B i.e., LUXOR-B and Danske Invest go up and down completely randomly.
Pair Corralation between LUXOR-B and Danske Invest
Assuming the 90 days trading horizon Investeringsselskabet Luxor AS is expected to under-perform the Danske Invest. In addition to that, LUXOR-B is 14.76 times more volatile than Danske Invest Euro. It trades about -0.14 of its total potential returns per unit of risk. Danske Invest Euro is currently generating about 0.38 per unit of volatility. If you would invest 9,934 in Danske Invest Euro on September 13, 2024 and sell it today you would earn a total of 111.00 from holding Danske Invest Euro or generate 1.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Investeringsselskabet Luxor AS vs. Danske Invest Euro
Performance |
| Timeline |
| Investeringsselskabet |
| Danske Invest Euro |
LUXOR-B and Danske Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LUXOR-B and Danske Invest
The main advantage of trading using opposite LUXOR-B and Danske Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LUXOR-B position performs unexpectedly, Danske Invest 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 Danske Invest will offset losses from the drop in Danske Invest's long position.The idea behind Investeringsselskabet Luxor AS and Danske Invest Euro pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Danske Invest vs. Novo Nordisk AS | Danske Invest vs. Nordea Bank Abp | Danske Invest vs. DSV Panalpina AS | Danske Invest vs. AP Mller |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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