Correlation Between ALBIS LEASING and GigaMedia
Can any of the company-specific risk be diversified away by investing in both ALBIS LEASING and GigaMedia 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 GigaMedia 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 GigaMedia, you can compare the effects of market volatilities on ALBIS LEASING and GigaMedia 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 GigaMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALBIS LEASING and GigaMedia.
Diversification Opportunities for ALBIS LEASING and GigaMedia
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ALBIS and GigaMedia is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding ALBIS LEASING AG and GigaMedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GigaMedia 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 GigaMedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GigaMedia has no effect on the direction of ALBIS LEASING i.e., ALBIS LEASING and GigaMedia go up and down completely randomly.
Pair Corralation between ALBIS LEASING and GigaMedia
Assuming the 90 days trading horizon ALBIS LEASING AG is expected to under-perform the GigaMedia. But the stock apears to be less risky and, when comparing its historical volatility, ALBIS LEASING AG is 4.34 times less risky than GigaMedia. The stock trades about -0.09 of its potential returns per unit of risk. The GigaMedia is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 140.00 in GigaMedia on November 3, 2024 and sell it today you would earn a total of 1.00 from holding GigaMedia or generate 0.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ALBIS LEASING AG vs. GigaMedia
Performance |
| Timeline |
| ALBIS LEASING AG |
| GigaMedia |
ALBIS LEASING and GigaMedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ALBIS LEASING and GigaMedia
The main advantage of trading using opposite ALBIS LEASING and GigaMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALBIS LEASING position performs unexpectedly, GigaMedia 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 GigaMedia will offset losses from the drop in GigaMedia's long position.| ALBIS LEASING vs. SBI Insurance Group | ALBIS LEASING vs. GameStop Corp | ALBIS LEASING vs. BAKED GAMES SA | ALBIS LEASING vs. UNIQA INSURANCE GR |
| GigaMedia vs. Autohome ADR | GigaMedia vs. Semiconductor Manufacturing International | GigaMedia vs. The Home Depot | GigaMedia vs. DFS Furniture PLC |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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