Correlation Between Nordea Invest and LUXOR-B
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By analyzing existing cross correlation between Nordea Invest Global and Investeringsselskabet Luxor AS, you can compare the effects of market volatilities on Nordea 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 Nordea Invest with a short position of LUXOR-B. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordea Invest and LUXOR-B.
Diversification Opportunities for Nordea Invest and LUXOR-B
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nordea and LUXOR-B is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Nordea Invest Global and Investeringsselskabet Luxor AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investeringsselskabet and Nordea 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 Nordea Invest Global 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 Nordea Invest i.e., Nordea Invest and LUXOR-B go up and down completely randomly.
Pair Corralation between Nordea Invest and LUXOR-B
Assuming the 90 days trading horizon Nordea Invest Global is expected to generate 0.25 times more return on investment than LUXOR-B. However, Nordea Invest Global is 3.96 times less risky than LUXOR-B. It trades about 0.17 of its potential returns per unit of risk. Investeringsselskabet Luxor AS is currently generating about -0.17 per unit of risk. If you would invest 4,444 in Nordea Invest Global on November 4, 2024 and sell it today you would earn a total of 99.00 from holding Nordea Invest Global or generate 2.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 86.36% |
| Values | Daily Returns |
Nordea Invest Global vs. Investeringsselskabet Luxor AS
Performance |
| Timeline |
| Nordea Invest Global |
| Investeringsselskabet |
Nordea Invest and LUXOR-B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordea Invest and LUXOR-B
The main advantage of trading using opposite Nordea Invest and LUXOR-B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordea 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.| Nordea Invest vs. PARKEN Sport Entertainment | Nordea Invest vs. BankIn Bredygt Klimaakt | Nordea Invest vs. Vestjysk Bank AS | Nordea Invest vs. Dataproces Group AS |
| LUXOR-B vs. Skjern Bank AS | LUXOR-B vs. Groenlandsbanken AS | LUXOR-B vs. Fynske Bank AS | LUXOR-B vs. Lollands Bank |
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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