Correlation Between ALBIS LEASING and Aedas Homes
Can any of the company-specific risk be diversified away by investing in both ALBIS LEASING and Aedas Homes 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 ALBIS LEASING and Aedas Homes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ALBIS LEASING AG and Aedas Homes SA, you can compare the effects of market volatilities on ALBIS LEASING and Aedas Homes 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 ALBIS LEASING with a short position of Aedas Homes. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALBIS LEASING and Aedas Homes.
Diversification Opportunities for ALBIS LEASING and Aedas Homes
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between ALBIS and Aedas is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding ALBIS LEASING AG and Aedas Homes SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aedas Homes SA and ALBIS LEASING 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 ALBIS LEASING AG are associated (or correlated) with Aedas Homes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aedas Homes SA has no effect on the direction of ALBIS LEASING i.e., ALBIS LEASING and Aedas Homes go up and down completely randomly.
Pair Corralation between ALBIS LEASING and Aedas Homes
Assuming the 90 days trading horizon ALBIS LEASING AG is expected to generate 0.11 times more return on investment than Aedas Homes. However, ALBIS LEASING AG is 9.11 times less risky than Aedas Homes. It trades about 0.21 of its potential returns per unit of risk. Aedas Homes SA is currently generating about -0.09 per unit of risk. If you would invest 276.00 in ALBIS LEASING AG on November 28, 2024 and sell it today you would earn a total of 2.00 from holding ALBIS LEASING AG or generate 0.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ALBIS LEASING AG vs. Aedas Homes SA
Performance |
| Timeline |
| ALBIS LEASING AG |
| Aedas Homes SA |
ALBIS LEASING and Aedas Homes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ALBIS LEASING and Aedas Homes
The main advantage of trading using opposite ALBIS LEASING and Aedas Homes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALBIS LEASING position performs unexpectedly, Aedas Homes 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 Aedas Homes will offset losses from the drop in Aedas Homes' long position.| ALBIS LEASING vs. Apple Inc | ALBIS LEASING vs. Apple Inc | ALBIS LEASING vs. Apple Inc | ALBIS LEASING vs. Apple Inc |
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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