Correlation Between ALBIS LEASING and GRENKELEASING
Can any of the company-specific risk be diversified away by investing in both ALBIS LEASING and GRENKELEASING 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 GRENKELEASING 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 GRENKELEASING Dusseldorf, you can compare the effects of market volatilities on ALBIS LEASING and GRENKELEASING 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 GRENKELEASING. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALBIS LEASING and GRENKELEASING.
Diversification Opportunities for ALBIS LEASING and GRENKELEASING
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ALBIS and GRENKELEASING is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding ALBIS LEASING AG and GRENKELEASING Dusseldorf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRENKELEASING Duss 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 GRENKELEASING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRENKELEASING Duss has no effect on the direction of ALBIS LEASING i.e., ALBIS LEASING and GRENKELEASING go up and down completely randomly.
Pair Corralation between ALBIS LEASING and GRENKELEASING
Assuming the 90 days trading horizon ALBIS LEASING AG is expected to generate 0.36 times more return on investment than GRENKELEASING. However, ALBIS LEASING AG is 2.75 times less risky than GRENKELEASING. It trades about 0.07 of its potential returns per unit of risk. GRENKELEASING Dusseldorf is currently generating about -0.02 per unit of risk. If you would invest 203.00 in ALBIS LEASING AG on October 14, 2024 and sell it today you would earn a total of 71.00 from holding ALBIS LEASING AG or generate 34.98% 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. GRENKELEASING Dusseldorf
Performance |
| Timeline |
| ALBIS LEASING AG |
| GRENKELEASING Duss |
ALBIS LEASING and GRENKELEASING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ALBIS LEASING and GRENKELEASING
The main advantage of trading using opposite ALBIS LEASING and GRENKELEASING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALBIS LEASING position performs unexpectedly, GRENKELEASING 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 GRENKELEASING will offset losses from the drop in GRENKELEASING's long position.| ALBIS LEASING vs. INDO RAMA SYNTHETIC | ALBIS LEASING vs. Charter Communications | ALBIS LEASING vs. TRI CHEMICAL LABORATINC | ALBIS LEASING vs. T MOBILE INCDL 00001 |
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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 Transaction History module to view history of all your transactions and understand their impact on performance.
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