Correlation Between ALBIS LEASING and Gemfields Group
Can any of the company-specific risk be diversified away by investing in both ALBIS LEASING and Gemfields 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 ALBIS LEASING and Gemfields Group 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 Gemfields Group Limited, you can compare the effects of market volatilities on ALBIS LEASING and Gemfields 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 ALBIS LEASING with a short position of Gemfields Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALBIS LEASING and Gemfields Group.
Diversification Opportunities for ALBIS LEASING and Gemfields Group
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between ALBIS and Gemfields is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding ALBIS LEASING AG and Gemfields Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gemfields Group 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 Gemfields Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gemfields Group has no effect on the direction of ALBIS LEASING i.e., ALBIS LEASING and Gemfields Group go up and down completely randomly.
Pair Corralation between ALBIS LEASING and Gemfields Group
Assuming the 90 days trading horizon ALBIS LEASING AG is expected to generate 0.19 times more return on investment than Gemfields Group. However, ALBIS LEASING AG is 5.36 times less risky than Gemfields Group. It trades about 0.07 of its potential returns per unit of risk. Gemfields Group Limited is currently generating about -0.01 per unit of risk. If you would invest 203.00 in ALBIS LEASING AG on October 14, 2024 and sell it today you would earn a total of 71.00 from holding ALBIS LEASING AG or generate 34.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ALBIS LEASING AG vs. Gemfields Group Limited
Performance |
| Timeline |
| ALBIS LEASING AG |
| Gemfields Group |
ALBIS LEASING and Gemfields Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ALBIS LEASING and Gemfields Group
The main advantage of trading using opposite ALBIS LEASING and Gemfields Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALBIS LEASING position performs unexpectedly, Gemfields 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 Gemfields Group will offset losses from the drop in Gemfields Group'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 |
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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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