Correlation Between ALBIS LEASING and Far East
Can any of the company-specific risk be diversified away by investing in both ALBIS LEASING and Far East 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 Far East 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 Far East Horizon, you can compare the effects of market volatilities on ALBIS LEASING and Far East 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 Far East. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALBIS LEASING and Far East.
Diversification Opportunities for ALBIS LEASING and Far East
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between ALBIS and Far is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding ALBIS LEASING AG and Far East Horizon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Far East Horizon 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 Far East. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Far East Horizon has no effect on the direction of ALBIS LEASING i.e., ALBIS LEASING and Far East go up and down completely randomly.
Pair Corralation between ALBIS LEASING and Far East
Assuming the 90 days trading horizon ALBIS LEASING AG is expected to under-perform the Far East. In addition to that, ALBIS LEASING is 1.03 times more volatile than Far East Horizon. It trades about -0.08 of its total potential returns per unit of risk. Far East Horizon is currently generating about 0.1 per unit of volatility. If you would invest 62.00 in Far East Horizon on October 15, 2024 and sell it today you would earn a total of 1.00 from holding Far East Horizon or generate 1.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ALBIS LEASING AG vs. Far East Horizon
Performance |
| Timeline |
| ALBIS LEASING AG |
| Far East Horizon |
ALBIS LEASING and Far East Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ALBIS LEASING and Far East
The main advantage of trading using opposite ALBIS LEASING and Far East positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALBIS LEASING position performs unexpectedly, Far East 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 Far East will offset losses from the drop in Far East's long position.| ALBIS LEASING vs. National Beverage Corp | ALBIS LEASING vs. HYATT HOTELS A | ALBIS LEASING vs. MOLSON RS BEVERAGE | ALBIS LEASING vs. Monster Beverage Corp |
| Far East vs. ALBIS LEASING AG | Far East vs. Firan Technology Group | Far East vs. MACOM Technology Solutions | Far East vs. FUYO GENERAL LEASE |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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