Correlation Between ALBIS LEASING and CDN IMPERIAL
Can any of the company-specific risk be diversified away by investing in both ALBIS LEASING and CDN IMPERIAL 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 CDN IMPERIAL 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 CDN IMPERIAL BANK, you can compare the effects of market volatilities on ALBIS LEASING and CDN IMPERIAL 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 CDN IMPERIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALBIS LEASING and CDN IMPERIAL.
Diversification Opportunities for ALBIS LEASING and CDN IMPERIAL
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ALBIS and CDN is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding ALBIS LEASING AG and CDN IMPERIAL BANK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CDN IMPERIAL BANK 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 CDN IMPERIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CDN IMPERIAL BANK has no effect on the direction of ALBIS LEASING i.e., ALBIS LEASING and CDN IMPERIAL go up and down completely randomly.
Pair Corralation between ALBIS LEASING and CDN IMPERIAL
Assuming the 90 days trading horizon ALBIS LEASING is expected to generate 2.37 times less return on investment than CDN IMPERIAL. But when comparing it to its historical volatility, ALBIS LEASING AG is 1.39 times less risky than CDN IMPERIAL. It trades about 0.06 of its potential returns per unit of risk. CDN IMPERIAL BANK is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 3,369 in CDN IMPERIAL BANK on September 3, 2024 and sell it today you would earn a total of 2,750 from holding CDN IMPERIAL BANK or generate 81.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ALBIS LEASING AG vs. CDN IMPERIAL BANK
Performance |
| Timeline |
| ALBIS LEASING AG |
| CDN IMPERIAL BANK |
ALBIS LEASING and CDN IMPERIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ALBIS LEASING and CDN IMPERIAL
The main advantage of trading using opposite ALBIS LEASING and CDN IMPERIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALBIS LEASING position performs unexpectedly, CDN IMPERIAL 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 CDN IMPERIAL will offset losses from the drop in CDN IMPERIAL's long position.| ALBIS LEASING vs. TOTAL GABON | ALBIS LEASING vs. Walgreens Boots Alliance | ALBIS LEASING vs. Peak Resources Limited |
| CDN IMPERIAL vs. TOTAL GABON | CDN IMPERIAL vs. Walgreens Boots Alliance | CDN IMPERIAL vs. Peak Resources Limited |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |