Correlation Between LUXOR-B and Rovsing AS
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By analyzing existing cross correlation between Investeringsselskabet Luxor AS and Rovsing AS, you can compare the effects of market volatilities on LUXOR-B and Rovsing 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 Rovsing AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of LUXOR-B and Rovsing AS.
Diversification Opportunities for LUXOR-B and Rovsing AS
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between LUXOR-B and Rovsing is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Investeringsselskabet Luxor AS and Rovsing AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rovsing 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 Rovsing AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rovsing AS has no effect on the direction of LUXOR-B i.e., LUXOR-B and Rovsing AS go up and down completely randomly.
Pair Corralation between LUXOR-B and Rovsing AS
Assuming the 90 days trading horizon Investeringsselskabet Luxor AS is expected to under-perform the Rovsing AS. But the stock apears to be less risky and, when comparing its historical volatility, Investeringsselskabet Luxor AS is 1.77 times less risky than Rovsing AS. The stock trades about -0.02 of its potential returns per unit of risk. The Rovsing AS is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 6,140 in Rovsing AS on November 5, 2024 and sell it today you would lose (2,140) from holding Rovsing AS or give up 34.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Investeringsselskabet Luxor AS vs. Rovsing AS
Performance |
| Timeline |
| Investeringsselskabet |
| Rovsing AS |
LUXOR-B and Rovsing AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LUXOR-B and Rovsing AS
The main advantage of trading using opposite LUXOR-B and Rovsing AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LUXOR-B position performs unexpectedly, Rovsing 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 Rovsing AS will offset losses from the drop in Rovsing AS'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 |
| Rovsing AS vs. BioPorto | Rovsing AS vs. cBrain AS | Rovsing AS vs. North Media AS | Rovsing AS vs. Zealand Pharma 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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