Correlation Between LUXOR-B and Maj Invest
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By analyzing existing cross correlation between Investeringsselskabet Luxor AS and Maj Invest Emerging, you can compare the effects of market volatilities on LUXOR-B and Maj 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 Maj Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of LUXOR-B and Maj Invest.
Diversification Opportunities for LUXOR-B and Maj Invest
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between LUXOR-B and Maj is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Investeringsselskabet Luxor AS and Maj Invest Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maj Invest Emerging 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 Maj Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maj Invest Emerging has no effect on the direction of LUXOR-B i.e., LUXOR-B and Maj Invest go up and down completely randomly.
Pair Corralation between LUXOR-B and Maj Invest
Assuming the 90 days trading horizon Investeringsselskabet Luxor AS is expected to generate 1.5 times more return on investment than Maj Invest. However, LUXOR-B is 1.5 times more volatile than Maj Invest Emerging. It trades about 0.03 of its potential returns per unit of risk. Maj Invest Emerging is currently generating about 0.05 per unit of risk. If you would invest 53,000 in Investeringsselskabet Luxor AS on September 5, 2024 and sell it today you would earn a total of 3,500 from holding Investeringsselskabet Luxor AS or generate 6.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.22% |
| Values | Daily Returns |
Investeringsselskabet Luxor AS vs. Maj Invest Emerging
Performance |
| Timeline |
| Investeringsselskabet |
| Maj Invest Emerging |
LUXOR-B and Maj Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LUXOR-B and Maj Invest
The main advantage of trading using opposite LUXOR-B and Maj Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LUXOR-B position performs unexpectedly, Maj 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 Maj Invest will offset losses from the drop in Maj Invest's long position.| LUXOR-B vs. SKAKO AS | LUXOR-B vs. Bavarian Nordic | LUXOR-B vs. cBrain AS | LUXOR-B vs. PF Atlantic Petroleum |
| Maj Invest vs. Bavarian Nordic | Maj Invest vs. Investeringsselskabet Luxor AS | Maj Invest vs. cBrain AS | Maj Invest vs. Fast Ejendom |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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