Correlation Between Albany International and ZKH Group
Can any of the company-specific risk be diversified away by investing in both Albany International and ZKH Group 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 ZKH Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Albany International and ZKH Group Limited, you can compare the effects of market volatilities on Albany International and ZKH Group 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 ZKH Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Albany International and ZKH Group.
Diversification Opportunities for Albany International and ZKH Group
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Albany and ZKH is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Albany International and ZKH Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZKH Group Limited 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 ZKH Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZKH Group Limited has no effect on the direction of Albany International i.e., Albany International and ZKH Group go up and down completely randomly.
Pair Corralation between Albany International and ZKH Group
Considering the 90-day investment horizon Albany International is expected to generate 1.09 times more return on investment than ZKH Group. However, Albany International is 1.09 times more volatile than ZKH Group Limited. It trades about 0.26 of its potential returns per unit of risk. ZKH Group Limited is currently generating about -0.1 per unit of risk. If you would invest 7,075 in Albany International on August 31, 2024 and sell it today you would earn a total of 1,165 from holding Albany International or generate 16.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Albany International vs. ZKH Group Limited
Performance |
| Timeline |
| Albany International |
| ZKH Group Limited |
Albany International and ZKH Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Albany International and ZKH Group
The main advantage of trading using opposite Albany International and ZKH Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Albany International position performs unexpectedly, ZKH Group 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 ZKH Group will offset losses from the drop in ZKH Group's long position.| Albany International vs. Culp Inc | Albany International vs. Unifi Inc | Albany International vs. Toray Industries |
| ZKH Group vs. NETGEAR | ZKH Group vs. Coupang LLC | ZKH Group vs. BCE Inc | ZKH Group vs. Meiwu Technology Co |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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