Correlation Between ALBIS LEASING and Norwegian Air
Can any of the company-specific risk be diversified away by investing in both ALBIS LEASING and Norwegian Air 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 Norwegian Air 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 Norwegian Air Shuttle, you can compare the effects of market volatilities on ALBIS LEASING and Norwegian Air 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 Norwegian Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALBIS LEASING and Norwegian Air.
Diversification Opportunities for ALBIS LEASING and Norwegian Air
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between ALBIS and Norwegian is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding ALBIS LEASING AG and Norwegian Air Shuttle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Norwegian Air Shuttle 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 Norwegian Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Norwegian Air Shuttle has no effect on the direction of ALBIS LEASING i.e., ALBIS LEASING and Norwegian Air go up and down completely randomly.
Pair Corralation between ALBIS LEASING and Norwegian Air
Assuming the 90 days trading horizon ALBIS LEASING AG is expected to generate 0.09 times more return on investment than Norwegian Air. However, ALBIS LEASING AG is 10.88 times less risky than Norwegian Air. It trades about 0.32 of its potential returns per unit of risk. Norwegian Air Shuttle is currently generating about -0.03 per unit of risk. If you would invest 274.00 in ALBIS LEASING AG on November 5, 2024 and sell it today you would earn a total of 4.00 from holding ALBIS LEASING AG or generate 1.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ALBIS LEASING AG vs. Norwegian Air Shuttle
Performance |
| Timeline |
| ALBIS LEASING AG |
| Norwegian Air Shuttle |
ALBIS LEASING and Norwegian Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ALBIS LEASING and Norwegian Air
The main advantage of trading using opposite ALBIS LEASING and Norwegian Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALBIS LEASING position performs unexpectedly, Norwegian Air 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 Norwegian Air will offset losses from the drop in Norwegian Air's long position.| ALBIS LEASING vs. Thai Beverage Public | ALBIS LEASING vs. TYSON FOODS A | ALBIS LEASING vs. MUTUIONLINE | ALBIS LEASING vs. Moneysupermarket Group PLC |
| Norwegian Air vs. Zijin Mining Group | Norwegian Air vs. Calibre Mining Corp | Norwegian Air vs. Geely Automobile Holdings | Norwegian Air vs. ADRIATIC METALS LS 013355 |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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