Correlation Between Rovsing AS and LUXOR-B
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By analyzing existing cross correlation between Rovsing AS and Investeringsselskabet Luxor AS, you can compare the effects of market volatilities on Rovsing AS 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 Rovsing AS with a short position of LUXOR-B. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rovsing AS and LUXOR-B.
Diversification Opportunities for Rovsing AS and LUXOR-B
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Rovsing and LUXOR-B is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Rovsing AS and Investeringsselskabet Luxor AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investeringsselskabet and Rovsing AS 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 Rovsing 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 Rovsing AS i.e., Rovsing AS and LUXOR-B go up and down completely randomly.
Pair Corralation between Rovsing AS and LUXOR-B
Assuming the 90 days trading horizon Rovsing AS is expected to under-perform the LUXOR-B. In addition to that, Rovsing AS is 1.45 times more volatile than Investeringsselskabet Luxor AS. It trades about -0.15 of its total potential returns per unit of risk. Investeringsselskabet Luxor AS is currently generating about -0.14 per unit of volatility. If you would invest 59,500 in Investeringsselskabet Luxor AS on September 13, 2024 and sell it today you would lose (3,500) from holding Investeringsselskabet Luxor AS or give up 5.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rovsing AS vs. Investeringsselskabet Luxor AS
Performance |
| Timeline |
| Rovsing AS |
| Investeringsselskabet |
Rovsing AS and LUXOR-B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rovsing AS and LUXOR-B
The main advantage of trading using opposite Rovsing AS and LUXOR-B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rovsing AS 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.| Rovsing AS vs. BioPorto | Rovsing AS vs. cBrain AS | Rovsing AS vs. Orphazyme AS | Rovsing AS vs. North Media 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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