Correlation Between ALBIS LEASING and MidCap Financial
Can any of the company-specific risk be diversified away by investing in both ALBIS LEASING and MidCap Financial 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 MidCap Financial 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 MidCap Financial Investment, you can compare the effects of market volatilities on ALBIS LEASING and MidCap Financial 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 MidCap Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALBIS LEASING and MidCap Financial.
Diversification Opportunities for ALBIS LEASING and MidCap Financial
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between ALBIS and MidCap is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding ALBIS LEASING AG and MidCap Financial Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MidCap Financial Inv 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 MidCap Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MidCap Financial Inv has no effect on the direction of ALBIS LEASING i.e., ALBIS LEASING and MidCap Financial go up and down completely randomly.
Pair Corralation between ALBIS LEASING and MidCap Financial
Assuming the 90 days trading horizon ALBIS LEASING is expected to generate 1.34 times less return on investment than MidCap Financial. But when comparing it to its historical volatility, ALBIS LEASING AG is 1.48 times less risky than MidCap Financial. It trades about 0.07 of its potential returns per unit of risk. MidCap Financial Investment is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 860.00 in MidCap Financial Investment on October 14, 2024 and sell it today you would earn a total of 405.00 from holding MidCap Financial Investment or generate 47.09% 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. MidCap Financial Investment
Performance |
| Timeline |
| ALBIS LEASING AG |
| MidCap Financial Inv |
ALBIS LEASING and MidCap Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ALBIS LEASING and MidCap Financial
The main advantage of trading using opposite ALBIS LEASING and MidCap Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALBIS LEASING position performs unexpectedly, MidCap Financial 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 MidCap Financial will offset losses from the drop in MidCap Financial's long position.| ALBIS LEASING vs. INDO RAMA SYNTHETIC | ALBIS LEASING vs. Charter Communications | ALBIS LEASING vs. TRI CHEMICAL LABORATINC | ALBIS LEASING vs. T MOBILE INCDL 00001 |
| MidCap Financial vs. Perseus Mining Limited | MidCap Financial vs. MTY Food Group | MidCap Financial vs. Nomad Foods | MidCap Financial vs. SENECA FOODS A |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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