Correlation Between LUXOR-B and Fast Ejendom
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By analyzing existing cross correlation between Investeringsselskabet Luxor AS and Fast Ejendom, you can compare the effects of market volatilities on LUXOR-B and Fast Ejendom 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 LUXOR-B with a short position of Fast Ejendom. Check out your portfolio center. Please also check ongoing floating volatility patterns of LUXOR-B and Fast Ejendom.
Diversification Opportunities for LUXOR-B and Fast Ejendom
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between LUXOR-B and Fast is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Investeringsselskabet Luxor AS and Fast Ejendom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fast Ejendom and LUXOR-B 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 Investeringsselskabet Luxor AS are associated (or correlated) with Fast Ejendom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fast Ejendom has no effect on the direction of LUXOR-B i.e., LUXOR-B and Fast Ejendom go up and down completely randomly.
Pair Corralation between LUXOR-B and Fast Ejendom
Assuming the 90 days trading horizon Investeringsselskabet Luxor AS is expected to under-perform the Fast Ejendom. In addition to that, LUXOR-B is 1.49 times more volatile than Fast Ejendom. It trades about -0.09 of its total potential returns per unit of risk. Fast Ejendom is currently generating about 0.11 per unit of volatility. If you would invest 11,900 in Fast Ejendom on December 30, 2024 and sell it today you would earn a total of 1,600 from holding Fast Ejendom or generate 13.45% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Investeringsselskabet Luxor AS vs. Fast Ejendom
Performance |
Timeline |
Investeringsselskabet |
Fast Ejendom |
LUXOR-B and Fast Ejendom Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with LUXOR-B and Fast Ejendom
The main advantage of trading using opposite LUXOR-B and Fast Ejendom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LUXOR-B position performs unexpectedly, Fast Ejendom 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 Fast Ejendom will offset losses from the drop in Fast Ejendom's long position.LUXOR-B vs. Skjern Bank AS | LUXOR-B vs. Groenlandsbanken AS | LUXOR-B vs. Fynske Bank AS | LUXOR-B vs. Lollands Bank |
Fast Ejendom vs. Prime Office AS | Fast Ejendom vs. First Farms AS | Fast Ejendom vs. Jeudan | Fast Ejendom vs. Gabriel Holding |
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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