Correlation Between LUXOR-B and Formuepleje Limittellus
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By analyzing existing cross correlation between Investeringsselskabet Luxor AS and Formuepleje Limittellus, you can compare the effects of market volatilities on LUXOR-B and Formuepleje Limittellus 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 Formuepleje Limittellus. Check out your portfolio center. Please also check ongoing floating volatility patterns of LUXOR-B and Formuepleje Limittellus.
Diversification Opportunities for LUXOR-B and Formuepleje Limittellus
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between LUXOR-B and Formuepleje is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Investeringsselskabet Luxor AS and Formuepleje Limittellus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Formuepleje Limittellus 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 Formuepleje Limittellus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Formuepleje Limittellus has no effect on the direction of LUXOR-B i.e., LUXOR-B and Formuepleje Limittellus go up and down completely randomly.
Pair Corralation between LUXOR-B and Formuepleje Limittellus
Assuming the 90 days trading horizon Investeringsselskabet Luxor AS is expected to under-perform the Formuepleje Limittellus. In addition to that, LUXOR-B is 2.21 times more volatile than Formuepleje Limittellus. It trades about -0.03 of its total potential returns per unit of risk. Formuepleje Limittellus is currently generating about 0.15 per unit of volatility. If you would invest 28,468 in Formuepleje Limittellus on August 31, 2024 and sell it today you would earn a total of 904.00 from holding Formuepleje Limittellus or generate 3.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Investeringsselskabet Luxor AS vs. Formuepleje Limittellus
Performance |
| Timeline |
| Investeringsselskabet |
| Formuepleje Limittellus |
LUXOR-B and Formuepleje Limittellus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LUXOR-B and Formuepleje Limittellus
The main advantage of trading using opposite LUXOR-B and Formuepleje Limittellus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LUXOR-B position performs unexpectedly, Formuepleje Limittellus 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 Formuepleje Limittellus will offset losses from the drop in Formuepleje Limittellus' long position.| LUXOR-B vs. Skjern Bank AS | LUXOR-B vs. Groenlandsbanken AS | LUXOR-B vs. Fynske Bank AS | LUXOR-B vs. Lollands Bank |
| Formuepleje Limittellus vs. Strategic Investments AS | Formuepleje Limittellus vs. Jyske Bank AS | Formuepleje Limittellus vs. Djurslands Bank | Formuepleje Limittellus vs. Laan Spar 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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