Correlation Between ALBIS LEASING and PICC Property
Can any of the company-specific risk be diversified away by investing in both ALBIS LEASING and PICC Property 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 PICC Property 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 PICC Property and, you can compare the effects of market volatilities on ALBIS LEASING and PICC Property 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 PICC Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALBIS LEASING and PICC Property.
Diversification Opportunities for ALBIS LEASING and PICC Property
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ALBIS and PICC is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding ALBIS LEASING AG and PICC Property and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PICC Property 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 PICC Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PICC Property has no effect on the direction of ALBIS LEASING i.e., ALBIS LEASING and PICC Property go up and down completely randomly.
Pair Corralation between ALBIS LEASING and PICC Property
Assuming the 90 days trading horizon ALBIS LEASING AG is expected to generate 0.22 times more return on investment than PICC Property. However, ALBIS LEASING AG is 4.54 times less risky than PICC Property. It trades about -0.09 of its potential returns per unit of risk. PICC Property and is currently generating about -0.07 per unit of risk. If you would invest 280.00 in ALBIS LEASING AG on September 14, 2024 and sell it today you would lose (2.00) from holding ALBIS LEASING AG or give up 0.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ALBIS LEASING AG vs. PICC Property and
Performance |
| Timeline |
| ALBIS LEASING AG |
| PICC Property |
ALBIS LEASING and PICC Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ALBIS LEASING and PICC Property
The main advantage of trading using opposite ALBIS LEASING and PICC Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALBIS LEASING position performs unexpectedly, PICC Property 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 PICC Property will offset losses from the drop in PICC Property's long position.| ALBIS LEASING vs. Apple Inc | ALBIS LEASING vs. Apple Inc | ALBIS LEASING vs. Apple Inc | ALBIS LEASING vs. Apple Inc |
| PICC Property vs. Xinhua Winshare Publishing | PICC Property vs. DOCDATA | PICC Property vs. Strategic Education | PICC Property vs. ALBIS LEASING AG |
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.
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