Correlation Between ALBIS LEASING and FUYO GENERAL
Can any of the company-specific risk be diversified away by investing in both ALBIS LEASING and FUYO GENERAL 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 FUYO GENERAL 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 FUYO GENERAL LEASE, you can compare the effects of market volatilities on ALBIS LEASING and FUYO GENERAL 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 FUYO GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALBIS LEASING and FUYO GENERAL.
Diversification Opportunities for ALBIS LEASING and FUYO GENERAL
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ALBIS and FUYO is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding ALBIS LEASING AG and FUYO GENERAL LEASE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FUYO GENERAL LEASE 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 FUYO GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FUYO GENERAL LEASE has no effect on the direction of ALBIS LEASING i.e., ALBIS LEASING and FUYO GENERAL go up and down completely randomly.
Pair Corralation between ALBIS LEASING and FUYO GENERAL
Assuming the 90 days trading horizon ALBIS LEASING AG is expected to under-perform the FUYO GENERAL. But the stock apears to be less risky and, when comparing its historical volatility, ALBIS LEASING AG is 3.97 times less risky than FUYO GENERAL. The stock trades about -0.29 of its potential returns per unit of risk. The FUYO GENERAL LEASE is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 6,350 in FUYO GENERAL LEASE on August 26, 2024 and sell it today you would earn a total of 400.00 from holding FUYO GENERAL LEASE or generate 6.3% 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. FUYO GENERAL LEASE
Performance |
| Timeline |
| ALBIS LEASING AG |
| FUYO GENERAL LEASE |
ALBIS LEASING and FUYO GENERAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ALBIS LEASING and FUYO GENERAL
The main advantage of trading using opposite ALBIS LEASING and FUYO GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALBIS LEASING position performs unexpectedly, FUYO GENERAL 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 FUYO GENERAL will offset losses from the drop in FUYO GENERAL's long position.| ALBIS LEASING vs. CEOTRONICS | ALBIS LEASING vs. CENTURIA OFFICE REIT | ALBIS LEASING vs. HomeToGo SE | ALBIS LEASING vs. KB HOME |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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