Correlation Between Albany International and Micromobility
Can any of the company-specific risk be diversified away by investing in both Albany International and Micromobility 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 Micromobility into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Albany International and Micromobility, you can compare the effects of market volatilities on Albany International and Micromobility 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 Micromobility. Check out your portfolio center. Please also check ongoing floating volatility patterns of Albany International and Micromobility.
Diversification Opportunities for Albany International and Micromobility
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Albany and Micromobility is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Albany International and Micromobility in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Micromobility 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 Micromobility. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Micromobility has no effect on the direction of Albany International i.e., Albany International and Micromobility go up and down completely randomly.
Pair Corralation between Albany International and Micromobility
Considering the 90-day investment horizon Albany International is expected to generate 0.14 times more return on investment than Micromobility. However, Albany International is 7.27 times less risky than Micromobility. It trades about -0.01 of its potential returns per unit of risk. Micromobility is currently generating about -0.17 per unit of risk. If you would invest 10,081 in Albany International on August 24, 2024 and sell it today you would lose (1,603) from holding Albany International or give up 15.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 32.06% |
| Values | Daily Returns |
Albany International vs. Micromobility
Performance |
| Timeline |
| Albany International |
| Micromobility |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Albany International and Micromobility Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Albany International and Micromobility
The main advantage of trading using opposite Albany International and Micromobility positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Albany International position performs unexpectedly, Micromobility 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 Micromobility will offset losses from the drop in Micromobility's long position.| Albany International vs. Culp Inc | Albany International vs. Unifi Inc | Albany International vs. Toray Industries |
| Micromobility vs. Natural Alternatives International | Micromobility vs. Vita Coco | Micromobility vs. SunOpta | Micromobility vs. SNDL Inc |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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