Correlation Between Albany International and Dixie
Can any of the company-specific risk be diversified away by investing in both Albany International and Dixie 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 Albany International and Dixie into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Albany International and The Dixie Group, you can compare the effects of market volatilities on Albany International and Dixie 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 Albany International with a short position of Dixie. Check out your portfolio center. Please also check ongoing floating volatility patterns of Albany International and Dixie.
Diversification Opportunities for Albany International and Dixie
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Albany and Dixie is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Albany International and The Dixie Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dixie Group and Albany International 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 Albany International are associated (or correlated) with Dixie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dixie Group has no effect on the direction of Albany International i.e., Albany International and Dixie go up and down completely randomly.
Pair Corralation between Albany International and Dixie
If you would invest 7,225 in Albany International on August 28, 2024 and sell it today you would earn a total of 1,399 from holding Albany International or generate 19.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Albany International vs. The Dixie Group
Performance |
| Timeline |
| Albany International |
| Dixie Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
Albany International and Dixie Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Albany International and Dixie
The main advantage of trading using opposite Albany International and Dixie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Albany International position performs unexpectedly, Dixie 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 Dixie will offset losses from the drop in Dixie's long position.| Albany International vs. Culp Inc | Albany International vs. Unifi Inc | Albany International vs. Toray Industries |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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