Correlation Between ALBIS LEASING and SBI Insurance
Can any of the company-specific risk be diversified away by investing in both ALBIS LEASING and SBI Insurance 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 SBI Insurance 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 SBI Insurance Group, you can compare the effects of market volatilities on ALBIS LEASING and SBI Insurance 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 SBI Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALBIS LEASING and SBI Insurance.
Diversification Opportunities for ALBIS LEASING and SBI Insurance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ALBIS and SBI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ALBIS LEASING AG and SBI Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SBI Insurance 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 SBI Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SBI Insurance Group has no effect on the direction of ALBIS LEASING i.e., ALBIS LEASING and SBI Insurance go up and down completely randomly.
Pair Corralation between ALBIS LEASING and SBI Insurance
Assuming the 90 days trading horizon ALBIS LEASING AG is expected to under-perform the SBI Insurance. But the stock apears to be less risky and, when comparing its historical volatility, ALBIS LEASING AG is 2.23 times less risky than SBI Insurance. The stock trades about -0.07 of its potential returns per unit of risk. The SBI Insurance Group is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 555.00 in SBI Insurance Group on October 11, 2024 and sell it today you would earn a total of 90.00 from holding SBI Insurance Group or generate 16.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ALBIS LEASING AG vs. SBI Insurance Group
Performance |
| Timeline |
| ALBIS LEASING AG |
| SBI Insurance Group |
ALBIS LEASING and SBI Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ALBIS LEASING and SBI Insurance
The main advantage of trading using opposite ALBIS LEASING and SBI Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALBIS LEASING position performs unexpectedly, SBI Insurance 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 SBI Insurance will offset losses from the drop in SBI Insurance's long position.| ALBIS LEASING vs. SIDETRADE EO 1 | ALBIS LEASING vs. RETAIL FOOD GROUP | ALBIS LEASING vs. The Trade Desk | ALBIS LEASING vs. MOVIE GAMES SA |
| SBI Insurance vs. Performance Food Group | SBI Insurance vs. PREMIER FOODS | SBI Insurance vs. G III Apparel Group | SBI Insurance vs. alstria office REIT AG |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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