Correlation Between LUXOR-B and Impero AS
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By analyzing existing cross correlation between Investeringsselskabet Luxor AS and Impero AS, you can compare the effects of market volatilities on LUXOR-B and Impero 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 Impero AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of LUXOR-B and Impero AS.
Diversification Opportunities for LUXOR-B and Impero AS
Very good diversification
The 3 months correlation between LUXOR-B and Impero is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Investeringsselskabet Luxor AS and Impero AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impero 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 Impero AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impero AS has no effect on the direction of LUXOR-B i.e., LUXOR-B and Impero AS go up and down completely randomly.
Pair Corralation between LUXOR-B and Impero AS
Assuming the 90 days trading horizon Investeringsselskabet Luxor AS is expected to under-perform the Impero AS. But the stock apears to be less risky and, when comparing its historical volatility, Investeringsselskabet Luxor AS is 5.0 times less risky than Impero AS. The stock trades about -0.14 of its potential returns per unit of risk. The Impero AS is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 448.00 in Impero AS on September 13, 2024 and sell it today you would earn a total of 107.00 from holding Impero AS or generate 23.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Investeringsselskabet Luxor AS vs. Impero AS
Performance |
| Timeline |
| Investeringsselskabet |
| Impero AS |
LUXOR-B and Impero AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LUXOR-B and Impero AS
The main advantage of trading using opposite LUXOR-B and Impero AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LUXOR-B position performs unexpectedly, Impero 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 Impero AS will offset losses from the drop in Impero AS's long position.The idea behind Investeringsselskabet Luxor AS and Impero AS 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.| Impero AS vs. Penneo AS | Impero AS vs. Hydract AS | Impero AS vs. Shape Robotics AS | Impero AS vs. Dataproces Group 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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