Correlation Between MidCap Financial and ALBIS LEASING
Can any of the company-specific risk be diversified away by investing in both MidCap Financial and ALBIS LEASING at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining MidCap Financial and ALBIS LEASING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MidCap Financial Investment and ALBIS LEASING AG, you can compare the effects of market volatilities on MidCap Financial and ALBIS LEASING 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 MidCap Financial with a short position of ALBIS LEASING. Check out your portfolio center. Please also check ongoing floating volatility patterns of MidCap Financial and ALBIS LEASING.
Diversification Opportunities for MidCap Financial and ALBIS LEASING
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between MidCap and ALBIS is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding MidCap Financial Investment and ALBIS LEASING AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALBIS LEASING AG and MidCap Financial 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 MidCap Financial Investment are associated (or correlated) with ALBIS LEASING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALBIS LEASING AG has no effect on the direction of MidCap Financial i.e., MidCap Financial and ALBIS LEASING go up and down completely randomly.
Pair Corralation between MidCap Financial and ALBIS LEASING
Assuming the 90 days trading horizon MidCap Financial Investment is expected to generate 1.48 times more return on investment than ALBIS LEASING. However, MidCap Financial is 1.48 times more volatile than ALBIS LEASING AG. It trades about 0.07 of its potential returns per unit of risk. ALBIS LEASING AG is currently generating about 0.07 per unit of risk. If you would invest 860.00 in MidCap Financial Investment on October 14, 2024 and sell it today you would earn a total of 405.00 from holding MidCap Financial Investment or generate 47.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MidCap Financial Investment vs. ALBIS LEASING AG
Performance |
| Timeline |
| MidCap Financial Inv |
| ALBIS LEASING AG |
MidCap Financial and ALBIS LEASING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MidCap Financial and ALBIS LEASING
The main advantage of trading using opposite MidCap Financial and ALBIS LEASING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MidCap Financial position performs unexpectedly, ALBIS LEASING 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 ALBIS LEASING will offset losses from the drop in ALBIS LEASING's long position.| MidCap Financial vs. Perseus Mining Limited | MidCap Financial vs. MTY Food Group | MidCap Financial vs. Nomad Foods | MidCap Financial vs. SENECA FOODS A |
| ALBIS LEASING vs. INDO RAMA SYNTHETIC | ALBIS LEASING vs. Charter Communications | ALBIS LEASING vs. TRI CHEMICAL LABORATINC | ALBIS LEASING vs. T MOBILE INCDL 00001 |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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