Correlation Between Newcap Holding and LUXOR-B
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By analyzing existing cross correlation between Newcap Holding AS and Investeringsselskabet Luxor AS, you can compare the effects of market volatilities on Newcap Holding 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 Newcap Holding with a short position of LUXOR-B. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newcap Holding and LUXOR-B.
Diversification Opportunities for Newcap Holding and LUXOR-B
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Newcap and LUXOR-B is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Newcap Holding AS and Investeringsselskabet Luxor AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investeringsselskabet and Newcap Holding 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 Newcap Holding AS 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 Newcap Holding i.e., Newcap Holding and LUXOR-B go up and down completely randomly.
Pair Corralation between Newcap Holding and LUXOR-B
Assuming the 90 days trading horizon Newcap Holding AS is expected to generate 1.92 times more return on investment than LUXOR-B. However, Newcap Holding is 1.92 times more volatile than Investeringsselskabet Luxor AS. It trades about 0.02 of its potential returns per unit of risk. Investeringsselskabet Luxor AS is currently generating about -0.07 per unit of risk. If you would invest 9.70 in Newcap Holding AS on August 29, 2024 and sell it today you would earn a total of 0.05 from holding Newcap Holding AS or generate 0.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Newcap Holding AS vs. Investeringsselskabet Luxor AS
Performance |
| Timeline |
| Newcap Holding AS |
| Investeringsselskabet |
Newcap Holding and LUXOR-B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newcap Holding and LUXOR-B
The main advantage of trading using opposite Newcap Holding and LUXOR-B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newcap Holding 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.| Newcap Holding vs. SKAKO AS | Newcap Holding vs. Lollands Bank | Newcap Holding vs. Scandinavian Brake Systems | Newcap Holding vs. Rovsing 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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