Correlation Between ALBIS LEASING and Applied Materials
Can any of the company-specific risk be diversified away by investing in both ALBIS LEASING and Applied Materials 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 Applied Materials 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 Applied Materials, you can compare the effects of market volatilities on ALBIS LEASING and Applied Materials 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 Applied Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALBIS LEASING and Applied Materials.
Diversification Opportunities for ALBIS LEASING and Applied Materials
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ALBIS and Applied is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding ALBIS LEASING AG and Applied Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Applied Materials 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 Applied Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Applied Materials has no effect on the direction of ALBIS LEASING i.e., ALBIS LEASING and Applied Materials go up and down completely randomly.
Pair Corralation between ALBIS LEASING and Applied Materials
Assuming the 90 days trading horizon ALBIS LEASING AG is expected to under-perform the Applied Materials. But the stock apears to be less risky and, when comparing its historical volatility, ALBIS LEASING AG is 2.22 times less risky than Applied Materials. The stock trades about -0.07 of its potential returns per unit of risk. The Applied Materials is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 16,266 in Applied Materials on October 12, 2024 and sell it today you would earn a total of 724.00 from holding Applied Materials or generate 4.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
ALBIS LEASING AG vs. Applied Materials
Performance |
| Timeline |
| ALBIS LEASING AG |
| Applied Materials |
ALBIS LEASING and Applied Materials Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ALBIS LEASING and Applied Materials
The main advantage of trading using opposite ALBIS LEASING and Applied Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALBIS LEASING position performs unexpectedly, Applied Materials 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 Applied Materials will offset losses from the drop in Applied Materials' long position.| ALBIS LEASING vs. Broadridge Financial Solutions | ALBIS LEASING vs. Air Lease | ALBIS LEASING vs. WILLIS LEASE FIN | ALBIS LEASING vs. FUYO GENERAL LEASE |
| Applied Materials vs. Magic Software Enterprises | Applied Materials vs. WILLIS LEASE FIN | Applied Materials vs. ALBIS LEASING AG | Applied Materials vs. LOANDEPOT INC 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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