Correlation Between Albany International and Leisure Fund
Can any of the company-specific risk be diversified away by investing in both Albany International and Leisure Fund 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 Leisure Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Albany International and Leisure Fund Investor, you can compare the effects of market volatilities on Albany International and Leisure Fund 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 Leisure Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Albany International and Leisure Fund.
Diversification Opportunities for Albany International and Leisure Fund
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Albany and Leisure is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Albany International and Leisure Fund Investor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leisure Fund Investor 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 Leisure Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leisure Fund Investor has no effect on the direction of Albany International i.e., Albany International and Leisure Fund go up and down completely randomly.
Pair Corralation between Albany International and Leisure Fund
Considering the 90-day investment horizon Albany International is expected to under-perform the Leisure Fund. In addition to that, Albany International is 1.72 times more volatile than Leisure Fund Investor. It trades about -0.08 of its total potential returns per unit of risk. Leisure Fund Investor is currently generating about 0.13 per unit of volatility. If you would invest 9,424 in Leisure Fund Investor on November 28, 2024 and sell it today you would earn a total of 193.00 from holding Leisure Fund Investor or generate 2.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Albany International vs. Leisure Fund Investor
Performance |
| Timeline |
| Albany International |
| Leisure Fund Investor |
Albany International and Leisure Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Albany International and Leisure Fund
The main advantage of trading using opposite Albany International and Leisure Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Albany International position performs unexpectedly, Leisure Fund 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 Leisure Fund will offset losses from the drop in Leisure Fund's long position.| Albany International vs. Culp Inc | Albany International vs. Unifi Inc | Albany International vs. Toray Industries |
| Leisure Fund vs. Retailing Fund Investor | Leisure Fund vs. Financial Services Fund | Leisure Fund vs. Banking Fund Investor | Leisure Fund vs. Health Care Fund |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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