Correlation Between ALBIS LEASING and FEMALE HEALTH
Can any of the company-specific risk be diversified away by investing in both ALBIS LEASING and FEMALE HEALTH 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 FEMALE HEALTH 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 FEMALE HEALTH, you can compare the effects of market volatilities on ALBIS LEASING and FEMALE HEALTH 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 FEMALE HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALBIS LEASING and FEMALE HEALTH.
Diversification Opportunities for ALBIS LEASING and FEMALE HEALTH
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ALBIS and FEMALE is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding ALBIS LEASING AG and FEMALE HEALTH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FEMALE HEALTH 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 FEMALE HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FEMALE HEALTH has no effect on the direction of ALBIS LEASING i.e., ALBIS LEASING and FEMALE HEALTH go up and down completely randomly.
Pair Corralation between ALBIS LEASING and FEMALE HEALTH
Assuming the 90 days trading horizon ALBIS LEASING AG is expected to generate 0.15 times more return on investment than FEMALE HEALTH. However, ALBIS LEASING AG is 6.74 times less risky than FEMALE HEALTH. It trades about 0.06 of its potential returns per unit of risk. FEMALE HEALTH is currently generating about -0.04 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 Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ALBIS LEASING AG vs. FEMALE HEALTH
Performance |
| Timeline |
| ALBIS LEASING AG |
| FEMALE HEALTH |
ALBIS LEASING and FEMALE HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ALBIS LEASING and FEMALE HEALTH
The main advantage of trading using opposite ALBIS LEASING and FEMALE HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALBIS LEASING position performs unexpectedly, FEMALE HEALTH 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 FEMALE HEALTH will offset losses from the drop in FEMALE HEALTH's long position.| ALBIS LEASING vs. TOTAL GABON | ALBIS LEASING vs. Walgreens Boots Alliance | ALBIS LEASING vs. Peak Resources Limited |
| FEMALE HEALTH vs. Universal Display | FEMALE HEALTH vs. SALESFORCE INC CDR | FEMALE HEALTH vs. Entravision Communications | FEMALE HEALTH vs. ULTRA CLEAN HLDGS |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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