Correlation Between AltShares Trust and Albany International
Can any of the company-specific risk be diversified away by investing in both AltShares Trust and Albany International 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 AltShares Trust and Albany International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AltShares Trust and Albany International, you can compare the effects of market volatilities on AltShares Trust and Albany International 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 AltShares Trust with a short position of Albany International. Check out your portfolio center. Please also check ongoing floating volatility patterns of AltShares Trust and Albany International.
Diversification Opportunities for AltShares Trust and Albany International
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AltShares and Albany is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding AltShares Trust and Albany International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Albany International and AltShares Trust 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 AltShares Trust are associated (or correlated) with Albany International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Albany International has no effect on the direction of AltShares Trust i.e., AltShares Trust and Albany International go up and down completely randomly.
Pair Corralation between AltShares Trust and Albany International
Considering the 90-day investment horizon AltShares Trust is expected to generate 0.09 times more return on investment than Albany International. However, AltShares Trust is 11.7 times less risky than Albany International. It trades about 0.07 of its potential returns per unit of risk. Albany International is currently generating about -0.06 per unit of risk. If you would invest 2,761 in AltShares Trust on August 29, 2024 and sell it today you would earn a total of 29.00 from holding AltShares Trust or generate 1.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AltShares Trust vs. Albany International
Performance |
| Timeline |
| AltShares Trust |
| Albany International |
AltShares Trust and Albany International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AltShares Trust and Albany International
The main advantage of trading using opposite AltShares Trust and Albany International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AltShares Trust position performs unexpectedly, Albany International 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 Albany International will offset losses from the drop in Albany International's long position.| AltShares Trust vs. Albany International | AltShares Trust vs. Acadia Realty Trust | AltShares Trust vs. AptarGroup | AltShares Trust vs. Applied Industrial Technologies |
| Albany International vs. Culp Inc | Albany International vs. Unifi Inc | Albany International vs. Toray Industries | Albany International vs. International Paper |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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