Correlation Between ALBIS LEASING and General Mills
Can any of the company-specific risk be diversified away by investing in both ALBIS LEASING and General Mills 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 General Mills 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 General Mills, you can compare the effects of market volatilities on ALBIS LEASING and General Mills 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 General Mills. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALBIS LEASING and General Mills.
Diversification Opportunities for ALBIS LEASING and General Mills
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ALBIS and General is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding ALBIS LEASING AG and General Mills in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General Mills 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 General Mills. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General Mills has no effect on the direction of ALBIS LEASING i.e., ALBIS LEASING and General Mills go up and down completely randomly.
Pair Corralation between ALBIS LEASING and General Mills
Assuming the 90 days trading horizon ALBIS LEASING AG is expected to under-perform the General Mills. But the stock apears to be less risky and, when comparing its historical volatility, ALBIS LEASING AG is 1.27 times less risky than General Mills. The stock trades about -0.07 of its potential returns per unit of risk. The General Mills is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 6,184 in General Mills on October 7, 2024 and sell it today you would earn a total of 19.00 from holding General Mills or generate 0.31% 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. General Mills
Performance |
| Timeline |
| ALBIS LEASING AG |
| General Mills |
ALBIS LEASING and General Mills Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ALBIS LEASING and General Mills
The main advantage of trading using opposite ALBIS LEASING and General Mills positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALBIS LEASING position performs unexpectedly, General Mills 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 General Mills will offset losses from the drop in General Mills' long position.| ALBIS LEASING vs. Apple Inc | ALBIS LEASING vs. Apple Inc | ALBIS LEASING vs. Apple Inc | ALBIS LEASING vs. Apple Inc |
| General Mills vs. Singapore Telecommunications Limited | General Mills vs. The Hanover Insurance | General Mills vs. COMBA TELECOM SYST | General Mills vs. Japan Post Insurance |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |