Correlation Between LUXOR-B and Prime Office
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By analyzing existing cross correlation between Investeringsselskabet Luxor AS and Prime Office AS, you can compare the effects of market volatilities on LUXOR-B and Prime Office 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 Prime Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of LUXOR-B and Prime Office.
Diversification Opportunities for LUXOR-B and Prime Office
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between LUXOR-B and Prime is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Investeringsselskabet Luxor AS and Prime Office AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prime Office 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 Prime Office. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prime Office AS has no effect on the direction of LUXOR-B i.e., LUXOR-B and Prime Office go up and down completely randomly.
Pair Corralation between LUXOR-B and Prime Office
Assuming the 90 days trading horizon Investeringsselskabet Luxor AS is expected to under-perform the Prime Office. But the stock apears to be less risky and, when comparing its historical volatility, Investeringsselskabet Luxor AS is 1.03 times less risky than Prime Office. The stock trades about -0.07 of its potential returns per unit of risk. The Prime Office AS is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 17,600 in Prime Office AS on August 28, 2024 and sell it today you would lose (300.00) from holding Prime Office AS or give up 1.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Investeringsselskabet Luxor AS vs. Prime Office AS
Performance |
| Timeline |
| Investeringsselskabet |
| Prime Office AS |
LUXOR-B and Prime Office Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LUXOR-B and Prime Office
The main advantage of trading using opposite LUXOR-B and Prime Office positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LUXOR-B position performs unexpectedly, Prime Office 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 Prime Office will offset losses from the drop in Prime Office'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 |
| Prime Office vs. BioPorto | Prime Office vs. Newcap Holding AS | Prime Office vs. Agat Ejendomme AS | Prime Office vs. PF Atlantic Petroleum |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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