Correlation Between Prime Office and LED IBond
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By analyzing existing cross correlation between Prime Office AS and LED iBond International, you can compare the effects of market volatilities on Prime Office and LED IBond 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 Prime Office with a short position of LED IBond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prime Office and LED IBond.
Diversification Opportunities for Prime Office and LED IBond
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Prime and LED is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Prime Office AS and LED iBond International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LED iBond International and Prime Office 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 Prime Office AS are associated (or correlated) with LED IBond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LED iBond International has no effect on the direction of Prime Office i.e., Prime Office and LED IBond go up and down completely randomly.
Pair Corralation between Prime Office and LED IBond
Assuming the 90 days trading horizon Prime Office AS is expected to generate 0.07 times more return on investment than LED IBond. However, Prime Office AS is 13.75 times less risky than LED IBond. It trades about 0.06 of its potential returns per unit of risk. LED iBond International is currently generating about -0.01 per unit of risk. If you would invest 17,300 in Prime Office AS on September 14, 2024 and sell it today you would earn a total of 300.00 from holding Prime Office AS or generate 1.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Prime Office AS vs. LED iBond International
Performance |
| Timeline |
| Prime Office AS |
| LED iBond International |
Prime Office and LED IBond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prime Office and LED IBond
The main advantage of trading using opposite Prime Office and LED IBond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prime Office position performs unexpectedly, LED IBond 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 LED IBond will offset losses from the drop in LED IBond's long position.| Prime Office vs. Djurslands Bank | Prime Office vs. North Media AS | Prime Office vs. First Farms AS | Prime Office vs. Flgger group AS |
| LED IBond vs. Scandinavian Tobacco Group | LED IBond vs. PARKEN Sport Entertainment | LED IBond vs. Prime Office AS | LED IBond vs. Vestjysk Bank 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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