Correlation Between ALBIS LEASING and Agricultural Bank
Can any of the company-specific risk be diversified away by investing in both ALBIS LEASING and Agricultural Bank 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 Agricultural Bank 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 Agricultural Bank of, you can compare the effects of market volatilities on ALBIS LEASING and Agricultural Bank 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 Agricultural Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALBIS LEASING and Agricultural Bank.
Diversification Opportunities for ALBIS LEASING and Agricultural Bank
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ALBIS and Agricultural is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding ALBIS LEASING AG and Agricultural Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agricultural 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 Agricultural Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agricultural Bank has no effect on the direction of ALBIS LEASING i.e., ALBIS LEASING and Agricultural Bank go up and down completely randomly.
Pair Corralation between ALBIS LEASING and Agricultural Bank
Assuming the 90 days trading horizon ALBIS LEASING is expected to generate 33.81 times less return on investment than Agricultural Bank. But when comparing it to its historical volatility, ALBIS LEASING AG is 7.03 times less risky than Agricultural Bank. It trades about 0.04 of its potential returns per unit of risk. Agricultural Bank of is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 41.00 in Agricultural Bank of on October 30, 2024 and sell it today you would earn a total of 11.00 from holding Agricultural Bank of or generate 26.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ALBIS LEASING AG vs. Agricultural Bank of
Performance |
| Timeline |
| ALBIS LEASING AG |
| Agricultural Bank |
ALBIS LEASING and Agricultural Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ALBIS LEASING and Agricultural Bank
The main advantage of trading using opposite ALBIS LEASING and Agricultural Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALBIS LEASING position performs unexpectedly, Agricultural Bank 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 Agricultural Bank will offset losses from the drop in Agricultural Bank's long position.| ALBIS LEASING vs. Sunny Optical Technology | ALBIS LEASING vs. GAZTRTECHNIUADR15EO01 | ALBIS LEASING vs. PKSHA TECHNOLOGY INC | ALBIS LEASING vs. Firan Technology Group |
| Agricultural Bank vs. Allegheny Technologies Incorporated | Agricultural Bank vs. WESANA HEALTH HOLD | Agricultural Bank vs. Playtech plc | Agricultural Bank vs. AAC TECHNOLOGHLDGADR |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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