Correlation Between ALBIS LEASING and Meta Financial
Can any of the company-specific risk be diversified away by investing in both ALBIS LEASING and Meta Financial 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 Meta Financial 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 Meta Financial Group, you can compare the effects of market volatilities on ALBIS LEASING and Meta Financial 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 Meta Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALBIS LEASING and Meta Financial.
Diversification Opportunities for ALBIS LEASING and Meta Financial
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between ALBIS and Meta is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding ALBIS LEASING AG and Meta Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meta Financial 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 Meta Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meta Financial Group has no effect on the direction of ALBIS LEASING i.e., ALBIS LEASING and Meta Financial go up and down completely randomly.
Pair Corralation between ALBIS LEASING and Meta Financial
Assuming the 90 days trading horizon ALBIS LEASING is expected to generate 2.05 times less return on investment than Meta Financial. But when comparing it to its historical volatility, ALBIS LEASING AG is 2.37 times less risky than Meta Financial. It trades about 0.1 of its potential returns per unit of risk. Meta Financial Group is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 5,792 in Meta Financial Group on October 18, 2024 and sell it today you would earn a total of 1,308 from holding Meta Financial Group or generate 22.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ALBIS LEASING AG vs. Meta Financial Group
Performance |
| Timeline |
| ALBIS LEASING AG |
| Meta Financial Group |
ALBIS LEASING and Meta Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ALBIS LEASING and Meta Financial
The main advantage of trading using opposite ALBIS LEASING and Meta Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALBIS LEASING position performs unexpectedly, Meta Financial 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 Meta Financial will offset losses from the drop in Meta Financial's long position.| ALBIS LEASING vs. NEW MILLENNIUM IRON | ALBIS LEASING vs. American Eagle Outfitters | ALBIS LEASING vs. JAPAN TOBACCO UNSPADR12 | ALBIS LEASING vs. BRIT AMER TOBACCO |
| Meta Financial vs. FAST RETAIL ADR | Meta Financial vs. ALBIS LEASING AG | Meta Financial vs. Sixt Leasing SE | Meta Financial vs. Cleanaway Waste Management |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |