Correlation Between ALBIS LEASING and OAKTRSPECLENDNEW
Can any of the company-specific risk be diversified away by investing in both ALBIS LEASING and OAKTRSPECLENDNEW 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 OAKTRSPECLENDNEW 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 OAKTRSPECLENDNEW, you can compare the effects of market volatilities on ALBIS LEASING and OAKTRSPECLENDNEW 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 OAKTRSPECLENDNEW. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALBIS LEASING and OAKTRSPECLENDNEW.
Diversification Opportunities for ALBIS LEASING and OAKTRSPECLENDNEW
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ALBIS and OAKTRSPECLENDNEW is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding ALBIS LEASING AG and OAKTRSPECLENDNEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OAKTRSPECLENDNEW 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 OAKTRSPECLENDNEW. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OAKTRSPECLENDNEW has no effect on the direction of ALBIS LEASING i.e., ALBIS LEASING and OAKTRSPECLENDNEW go up and down completely randomly.
Pair Corralation between ALBIS LEASING and OAKTRSPECLENDNEW
Assuming the 90 days trading horizon ALBIS LEASING AG is expected to generate 0.58 times more return on investment than OAKTRSPECLENDNEW. However, ALBIS LEASING AG is 1.74 times less risky than OAKTRSPECLENDNEW. It trades about 0.06 of its potential returns per unit of risk. OAKTRSPECLENDNEW is currently generating about 0.0 per unit of risk. If you would invest 217.00 in ALBIS LEASING AG on September 3, 2024 and sell it today you would earn a total of 61.00 from holding ALBIS LEASING AG or generate 28.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ALBIS LEASING AG vs. OAKTRSPECLENDNEW
Performance |
| Timeline |
| ALBIS LEASING AG |
| OAKTRSPECLENDNEW |
ALBIS LEASING and OAKTRSPECLENDNEW Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ALBIS LEASING and OAKTRSPECLENDNEW
The main advantage of trading using opposite ALBIS LEASING and OAKTRSPECLENDNEW positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALBIS LEASING position performs unexpectedly, OAKTRSPECLENDNEW 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 OAKTRSPECLENDNEW will offset losses from the drop in OAKTRSPECLENDNEW's long position.| ALBIS LEASING vs. TOTAL GABON | ALBIS LEASING vs. Walgreens Boots Alliance | ALBIS LEASING vs. Peak Resources Limited |
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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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