Correlation Between ALBIS LEASING and RCI Hospitality
Can any of the company-specific risk be diversified away by investing in both ALBIS LEASING and RCI Hospitality 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 RCI Hospitality 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 RCI Hospitality Holdings, you can compare the effects of market volatilities on ALBIS LEASING and RCI Hospitality 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 RCI Hospitality. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALBIS LEASING and RCI Hospitality.
Diversification Opportunities for ALBIS LEASING and RCI Hospitality
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between ALBIS and RCI is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding ALBIS LEASING AG and RCI Hospitality Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RCI Hospitality Holdings 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 RCI Hospitality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RCI Hospitality Holdings has no effect on the direction of ALBIS LEASING i.e., ALBIS LEASING and RCI Hospitality go up and down completely randomly.
Pair Corralation between ALBIS LEASING and RCI Hospitality
Assuming the 90 days trading horizon ALBIS LEASING AG is expected to generate 0.68 times more return on investment than RCI Hospitality. However, ALBIS LEASING AG is 1.46 times less risky than RCI Hospitality. It trades about -0.07 of its potential returns per unit of risk. RCI Hospitality Holdings is currently generating about -0.21 per unit of risk. If you would invest 278.00 in ALBIS LEASING AG on October 24, 2024 and sell it today you would lose (4.00) from holding ALBIS LEASING AG or give up 1.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ALBIS LEASING AG vs. RCI Hospitality Holdings
Performance |
| Timeline |
| ALBIS LEASING AG |
| RCI Hospitality Holdings |
ALBIS LEASING and RCI Hospitality Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ALBIS LEASING and RCI Hospitality
The main advantage of trading using opposite ALBIS LEASING and RCI Hospitality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALBIS LEASING position performs unexpectedly, RCI Hospitality 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 RCI Hospitality will offset losses from the drop in RCI Hospitality's long position.| ALBIS LEASING vs. Molson Coors Beverage | ALBIS LEASING vs. Thai Beverage Public | ALBIS LEASING vs. GRUPO CARSO A1 | ALBIS LEASING vs. CarsalesCom |
| RCI Hospitality vs. ALBIS LEASING AG | RCI Hospitality vs. The Trade Desk | RCI Hospitality vs. H2O Retailing | RCI Hospitality vs. Lendlease Group |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| CEOs Directory Screen CEOs from public companies around the world | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |