Correlation Between Alfa Financial and ALBIS LEASING
Can any of the company-specific risk be diversified away by investing in both Alfa 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 Alfa 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 Alfa Financial Software and ALBIS LEASING AG, you can compare the effects of market volatilities on Alfa 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 Alfa Financial with a short position of ALBIS LEASING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alfa Financial and ALBIS LEASING.
Diversification Opportunities for Alfa Financial and ALBIS LEASING
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Alfa and ALBIS is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Alfa Financial Software 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 Alfa 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 Alfa Financial Software 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 Alfa Financial i.e., Alfa Financial and ALBIS LEASING go up and down completely randomly.
Pair Corralation between Alfa Financial and ALBIS LEASING
Assuming the 90 days trading horizon Alfa Financial Software is expected to generate 2.35 times more return on investment than ALBIS LEASING. However, Alfa Financial is 2.35 times more volatile than ALBIS LEASING AG. It trades about 0.15 of its potential returns per unit of risk. ALBIS LEASING AG is currently generating about 0.19 per unit of risk. If you would invest 214.00 in Alfa Financial Software on August 31, 2024 and sell it today you would earn a total of 46.00 from holding Alfa Financial Software or generate 21.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alfa Financial Software vs. ALBIS LEASING AG
Performance |
| Timeline |
| Alfa Financial Software |
| ALBIS LEASING AG |
Alfa Financial and ALBIS LEASING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alfa Financial and ALBIS LEASING
The main advantage of trading using opposite Alfa Financial and ALBIS LEASING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alfa 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.| Alfa Financial vs. Texas Roadhouse | Alfa Financial vs. G III Apparel Group | Alfa Financial vs. Transport International Holdings | Alfa Financial vs. GOLD ROAD RES |
| ALBIS LEASING vs. EAGLE MATERIALS | ALBIS LEASING vs. URBAN OUTFITTERS | ALBIS LEASING vs. Transportadora de Gas | ALBIS LEASING vs. Eagle Materials |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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