Correlation Between ALBIS LEASING and NEXON Co
Can any of the company-specific risk be diversified away by investing in both ALBIS LEASING and NEXON Co 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 NEXON Co 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 NEXON Co, you can compare the effects of market volatilities on ALBIS LEASING and NEXON Co 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 NEXON Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALBIS LEASING and NEXON Co.
Diversification Opportunities for ALBIS LEASING and NEXON Co
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ALBIS and NEXON is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding ALBIS LEASING AG and NEXON Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEXON Co 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 NEXON Co. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEXON Co has no effect on the direction of ALBIS LEASING i.e., ALBIS LEASING and NEXON Co go up and down completely randomly.
Pair Corralation between ALBIS LEASING and NEXON Co
Assuming the 90 days trading horizon ALBIS LEASING AG is expected to generate 0.1 times more return on investment than NEXON Co. However, ALBIS LEASING AG is 9.7 times less risky than NEXON Co. It trades about -0.17 of its potential returns per unit of risk. NEXON Co is currently generating about -0.23 per unit of risk. If you would invest 282.00 in ALBIS LEASING AG on September 1, 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 Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
ALBIS LEASING AG vs. NEXON Co
Performance |
| Timeline |
| ALBIS LEASING AG |
| NEXON Co |
ALBIS LEASING and NEXON Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ALBIS LEASING and NEXON Co
The main advantage of trading using opposite ALBIS LEASING and NEXON Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALBIS LEASING position performs unexpectedly, NEXON Co 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 NEXON Co will offset losses from the drop in NEXON Co's long position.| ALBIS LEASING vs. BJs Restaurants | ALBIS LEASING vs. THAI BEVERAGE | ALBIS LEASING vs. BOSTON BEER A | ALBIS LEASING vs. Khiron Life Sciences |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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