Correlation Between Albion Technology and Deutsche Post
Can any of the company-specific risk be diversified away by investing in both Albion Technology and Deutsche Post 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 Albion Technology and Deutsche Post into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Albion Technology General and Deutsche Post AG, you can compare the effects of market volatilities on Albion Technology and Deutsche Post 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 Albion Technology with a short position of Deutsche Post. Check out your portfolio center. Please also check ongoing floating volatility patterns of Albion Technology and Deutsche Post.
Diversification Opportunities for Albion Technology and Deutsche Post
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Albion and Deutsche is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Albion Technology General and Deutsche Post AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Post AG and Albion Technology 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 Albion Technology General are associated (or correlated) with Deutsche Post. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Post AG has no effect on the direction of Albion Technology i.e., Albion Technology and Deutsche Post go up and down completely randomly.
Pair Corralation between Albion Technology and Deutsche Post
Assuming the 90 days trading horizon Albion Technology General is expected to generate 0.52 times more return on investment than Deutsche Post. However, Albion Technology General is 1.94 times less risky than Deutsche Post. It trades about 0.02 of its potential returns per unit of risk. Deutsche Post AG is currently generating about 0.01 per unit of risk. If you would invest 6,528 in Albion Technology General on August 30, 2024 and sell it today you would earn a total of 322.00 from holding Albion Technology General or generate 4.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Albion Technology General vs. Deutsche Post AG
Performance |
| Timeline |
| Albion Technology General |
| Deutsche Post AG |
Albion Technology and Deutsche Post Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Albion Technology and Deutsche Post
The main advantage of trading using opposite Albion Technology and Deutsche Post positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Albion Technology position performs unexpectedly, Deutsche Post 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 Deutsche Post will offset losses from the drop in Deutsche Post's long position.| Albion Technology vs. Toyota Motor Corp | Albion Technology vs. Lendinvest PLC | Albion Technology vs. Neometals | Albion Technology vs. Coor Service Management |
| Deutsche Post vs. Lendinvest PLC | Deutsche Post vs. Neometals | Deutsche Post vs. Albion Technology General | Deutsche Post vs. Jupiter Fund Management |
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 Stocks Directory module to find actively traded stocks across global markets.
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