Correlation Between Far East and ALBIS LEASING
Can any of the company-specific risk be diversified away by investing in both Far East and ALBIS LEASING 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 Far East and ALBIS LEASING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Far East Horizon and ALBIS LEASING AG, you can compare the effects of market volatilities on Far East and ALBIS LEASING 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 Far East with a short position of ALBIS LEASING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Far East and ALBIS LEASING.
Diversification Opportunities for Far East and ALBIS LEASING
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Far and ALBIS is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Far East Horizon and ALBIS LEASING AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALBIS LEASING AG and Far East 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 Far East Horizon are associated (or correlated) with ALBIS LEASING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALBIS LEASING AG has no effect on the direction of Far East i.e., Far East and ALBIS LEASING go up and down completely randomly.
Pair Corralation between Far East and ALBIS LEASING
Assuming the 90 days horizon Far East Horizon is expected to generate 1.04 times more return on investment than ALBIS LEASING. However, Far East is 1.04 times more volatile than ALBIS LEASING AG. It trades about 0.01 of its potential returns per unit of risk. ALBIS LEASING AG is currently generating about -0.07 per unit of risk. If you would invest 63.00 in Far East Horizon on October 14, 2024 and sell it today you would earn a total of 0.00 from holding Far East Horizon or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Far East Horizon vs. ALBIS LEASING AG
Performance |
| Timeline |
| Far East Horizon |
| ALBIS LEASING AG |
Far East and ALBIS LEASING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Far East and ALBIS LEASING
The main advantage of trading using opposite Far East and ALBIS LEASING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Far East position performs unexpectedly, ALBIS LEASING 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 ALBIS LEASING will offset losses from the drop in ALBIS LEASING's long position.| Far East vs. ALBIS LEASING AG | Far East vs. Firan Technology Group | Far East vs. MACOM Technology Solutions | Far East vs. FUYO GENERAL LEASE |
| ALBIS LEASING vs. National Beverage Corp | ALBIS LEASING vs. HYATT HOTELS A | ALBIS LEASING vs. MOLSON RS BEVERAGE | ALBIS LEASING vs. Monster Beverage 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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