Correlation Between ALBIS LEASING and MAG Silver
Can any of the company-specific risk be diversified away by investing in both ALBIS LEASING and MAG Silver 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 MAG Silver 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 MAG Silver Corp, you can compare the effects of market volatilities on ALBIS LEASING and MAG Silver 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 MAG Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALBIS LEASING and MAG Silver.
Diversification Opportunities for ALBIS LEASING and MAG Silver
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ALBIS and MAG is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding ALBIS LEASING AG and MAG Silver Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAG Silver Corp 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 MAG Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAG Silver Corp has no effect on the direction of ALBIS LEASING i.e., ALBIS LEASING and MAG Silver go up and down completely randomly.
Pair Corralation between ALBIS LEASING and MAG Silver
Assuming the 90 days trading horizon ALBIS LEASING is expected to generate 8.66 times less return on investment than MAG Silver. But when comparing it to its historical volatility, ALBIS LEASING AG is 2.69 times less risky than MAG Silver. It trades about 0.04 of its potential returns per unit of risk. MAG Silver Corp is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,313 in MAG Silver Corp on October 30, 2024 and sell it today you would earn a total of 87.00 from holding MAG Silver Corp or generate 6.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ALBIS LEASING AG vs. MAG Silver Corp
Performance |
| Timeline |
| ALBIS LEASING AG |
| MAG Silver Corp |
ALBIS LEASING and MAG Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ALBIS LEASING and MAG Silver
The main advantage of trading using opposite ALBIS LEASING and MAG Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALBIS LEASING position performs unexpectedly, MAG Silver 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 MAG Silver will offset losses from the drop in MAG Silver's long position.| ALBIS LEASING vs. Sunny Optical Technology | ALBIS LEASING vs. GAZTRTECHNIUADR15EO01 | ALBIS LEASING vs. PKSHA TECHNOLOGY INC | ALBIS LEASING vs. Firan Technology Group |
| MAG Silver vs. Endeavour Silver Corp | MAG Silver vs. Americas Gold and | MAG Silver vs. Superior Plus Corp | MAG Silver vs. Origin Agritech |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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