Correlation Between Maj Invest and LUXOR-B
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By analyzing existing cross correlation between Maj Invest Glob and Investeringsselskabet Luxor AS, you can compare the effects of market volatilities on Maj Invest and LUXOR-B 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 Maj Invest with a short position of LUXOR-B. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maj Invest and LUXOR-B.
Diversification Opportunities for Maj Invest and LUXOR-B
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Maj and LUXOR-B is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Maj Invest Glob and Investeringsselskabet Luxor AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investeringsselskabet and Maj Invest 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 Maj Invest Glob are associated (or correlated) with LUXOR-B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investeringsselskabet has no effect on the direction of Maj Invest i.e., Maj Invest and LUXOR-B go up and down completely randomly.
Pair Corralation between Maj Invest and LUXOR-B
Assuming the 90 days trading horizon Maj Invest Glob is expected to generate 0.37 times more return on investment than LUXOR-B. However, Maj Invest Glob is 2.73 times less risky than LUXOR-B. It trades about 0.03 of its potential returns per unit of risk. Investeringsselskabet Luxor AS is currently generating about -0.14 per unit of risk. If you would invest 14,090 in Maj Invest Glob on September 13, 2024 and sell it today you would earn a total of 50.00 from holding Maj Invest Glob or generate 0.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Maj Invest Glob vs. Investeringsselskabet Luxor AS
Performance |
| Timeline |
| Maj Invest Glob |
| Investeringsselskabet |
Maj Invest and LUXOR-B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maj Invest and LUXOR-B
The main advantage of trading using opposite Maj Invest and LUXOR-B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maj Invest position performs unexpectedly, LUXOR-B 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 LUXOR-B will offset losses from the drop in LUXOR-B's long position.| Maj Invest vs. Groenlandsbanken AS | Maj Invest vs. North Media AS | Maj Invest vs. Nordfyns Bank AS | Maj Invest vs. Embla Medical hf |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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