Correlation Between ALBIS LEASING and Take Two
Can any of the company-specific risk be diversified away by investing in both ALBIS LEASING and Take Two 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 Take Two 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 Take Two Interactive Software, you can compare the effects of market volatilities on ALBIS LEASING and Take Two 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 Take Two. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALBIS LEASING and Take Two.
Diversification Opportunities for ALBIS LEASING and Take Two
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ALBIS and Take is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding ALBIS LEASING AG and Take Two Interactive Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Take Two Interactive 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 Take Two. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Take Two Interactive has no effect on the direction of ALBIS LEASING i.e., ALBIS LEASING and Take Two go up and down completely randomly.
Pair Corralation between ALBIS LEASING and Take Two
Assuming the 90 days trading horizon ALBIS LEASING is expected to generate 1.94 times less return on investment than Take Two. But when comparing it to its historical volatility, ALBIS LEASING AG is 1.73 times less risky than Take Two. It trades about 0.19 of its potential returns per unit of risk. Take Two Interactive Software is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 14,482 in Take Two Interactive Software on August 31, 2024 and sell it today you would earn a total of 3,258 from holding Take Two Interactive Software or generate 22.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ALBIS LEASING AG vs. Take Two Interactive Software
Performance |
| Timeline |
| ALBIS LEASING AG |
| Take Two Interactive |
ALBIS LEASING and Take Two Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ALBIS LEASING and Take Two
The main advantage of trading using opposite ALBIS LEASING and Take Two positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALBIS LEASING position performs unexpectedly, Take Two 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 Take Two will offset losses from the drop in Take Two's long position.| ALBIS LEASING vs. EAGLE MATERIALS | ALBIS LEASING vs. URBAN OUTFITTERS | ALBIS LEASING vs. Transportadora de Gas | ALBIS LEASING vs. Eagle Materials |
| Take Two vs. Playa Hotels Resorts | Take Two vs. Tencent Music Entertainment | Take Two vs. Universal Entertainment | Take Two vs. PLAYTIKA HOLDING DL 01 |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |