Correlation Between LUXOR-B and Lollands Bank
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By analyzing existing cross correlation between Investeringsselskabet Luxor AS and Lollands Bank, you can compare the effects of market volatilities on LUXOR-B and Lollands Bank 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 Lollands Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of LUXOR-B and Lollands Bank.
Diversification Opportunities for LUXOR-B and Lollands Bank
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between LUXOR-B and Lollands is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Investeringsselskabet Luxor AS and Lollands Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lollands Bank 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 Lollands Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lollands Bank has no effect on the direction of LUXOR-B i.e., LUXOR-B and Lollands Bank go up and down completely randomly.
Pair Corralation between LUXOR-B and Lollands Bank
Assuming the 90 days trading horizon Investeringsselskabet Luxor AS is expected to generate 3.45 times more return on investment than Lollands Bank. However, LUXOR-B is 3.45 times more volatile than Lollands Bank. It trades about 0.22 of its potential returns per unit of risk. Lollands Bank is currently generating about 0.06 per unit of risk. If you would invest 65,500 in Investeringsselskabet Luxor AS on October 26, 2024 and sell it today you would earn a total of 7,000 from holding Investeringsselskabet Luxor AS or generate 10.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Investeringsselskabet Luxor AS vs. Lollands Bank
Performance |
| Timeline |
| Investeringsselskabet |
| Lollands Bank |
LUXOR-B and Lollands Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LUXOR-B and Lollands Bank
The main advantage of trading using opposite LUXOR-B and Lollands Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LUXOR-B position performs unexpectedly, Lollands Bank 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 Lollands Bank will offset losses from the drop in Lollands Bank'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 |
| Lollands Bank vs. Skjern Bank AS | Lollands Bank vs. Kreditbanken AS | Lollands Bank vs. Djurslands Bank | Lollands Bank vs. Groenlandsbanken 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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