Correlation Between ALBIS LEASING and Global Ship
Can any of the company-specific risk be diversified away by investing in both ALBIS LEASING and Global Ship 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 Global Ship 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 Global Ship Lease, you can compare the effects of market volatilities on ALBIS LEASING and Global Ship 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 Global Ship. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALBIS LEASING and Global Ship.
Diversification Opportunities for ALBIS LEASING and Global Ship
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ALBIS and Global is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding ALBIS LEASING AG and Global Ship Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Ship Lease 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 Global Ship. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Ship Lease has no effect on the direction of ALBIS LEASING i.e., ALBIS LEASING and Global Ship go up and down completely randomly.
Pair Corralation between ALBIS LEASING and Global Ship
Assuming the 90 days trading horizon ALBIS LEASING AG is expected to generate 0.19 times more return on investment than Global Ship. However, ALBIS LEASING AG is 5.17 times less risky than Global Ship. It trades about -0.17 of its potential returns per unit of risk. Global Ship Lease is currently generating about -0.05 per unit of risk. If you would invest 282.00 in ALBIS LEASING AG on August 31, 2024 and sell it today you would lose (4.00) from holding ALBIS LEASING AG or give up 1.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ALBIS LEASING AG vs. Global Ship Lease
Performance |
| Timeline |
| ALBIS LEASING AG |
| Global Ship Lease |
ALBIS LEASING and Global Ship Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ALBIS LEASING and Global Ship
The main advantage of trading using opposite ALBIS LEASING and Global Ship positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALBIS LEASING position performs unexpectedly, Global Ship 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 Global Ship will offset losses from the drop in Global Ship's long position.| ALBIS LEASING vs. EAGLE MATERIALS | ALBIS LEASING vs. URBAN OUTFITTERS | ALBIS LEASING vs. Transportadora de Gas | ALBIS LEASING vs. Eagle Materials |
| Global Ship vs. Coeur Mining | Global Ship vs. IMAGIN MEDICAL INC | Global Ship vs. AVITA Medical | Global Ship vs. Consolidated Communications Holdings |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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