Correlation Between ALBIS LEASING and Tianjin Capital
Can any of the company-specific risk be diversified away by investing in both ALBIS LEASING and Tianjin Capital 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 Tianjin Capital 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 Tianjin Capital Environmental, you can compare the effects of market volatilities on ALBIS LEASING and Tianjin Capital 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 Tianjin Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALBIS LEASING and Tianjin Capital.
Diversification Opportunities for ALBIS LEASING and Tianjin Capital
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between ALBIS and Tianjin is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding ALBIS LEASING AG and Tianjin Capital Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Capital Envi 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 Tianjin Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Capital Envi has no effect on the direction of ALBIS LEASING i.e., ALBIS LEASING and Tianjin Capital go up and down completely randomly.
Pair Corralation between ALBIS LEASING and Tianjin Capital
Assuming the 90 days trading horizon ALBIS LEASING is expected to generate 3.54 times less return on investment than Tianjin Capital. But when comparing it to its historical volatility, ALBIS LEASING AG is 5.15 times less risky than Tianjin Capital. It trades about 0.11 of its potential returns per unit of risk. Tianjin Capital Environmental is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 17.00 in Tianjin Capital Environmental on October 25, 2024 and sell it today you would earn a total of 21.00 from holding Tianjin Capital Environmental or generate 123.53% 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. Tianjin Capital Environmental
Performance |
| Timeline |
| ALBIS LEASING AG |
| Tianjin Capital Envi |
ALBIS LEASING and Tianjin Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ALBIS LEASING and Tianjin Capital
The main advantage of trading using opposite ALBIS LEASING and Tianjin Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALBIS LEASING position performs unexpectedly, Tianjin Capital 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 Tianjin Capital will offset losses from the drop in Tianjin Capital's long position.| ALBIS LEASING vs. Apple Inc | ALBIS LEASING vs. Apple Inc | ALBIS LEASING vs. Apple Inc | ALBIS LEASING vs. Apple Inc |
| Tianjin Capital vs. MAGNUM MINING EXP | Tianjin Capital vs. Peijia Medical Limited | Tianjin Capital vs. ARDAGH METAL PACDL 0001 | Tianjin Capital vs. Forsys Metals Corp |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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