Correlation Between GRENKELEASING Dusseldorf and ALBIS LEASING
Can any of the company-specific risk be diversified away by investing in both GRENKELEASING Dusseldorf 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 GRENKELEASING Dusseldorf and ALBIS LEASING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GRENKELEASING Dusseldorf and ALBIS LEASING AG, you can compare the effects of market volatilities on GRENKELEASING Dusseldorf 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 GRENKELEASING Dusseldorf with a short position of ALBIS LEASING. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRENKELEASING Dusseldorf and ALBIS LEASING.
Diversification Opportunities for GRENKELEASING Dusseldorf and ALBIS LEASING
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between GRENKELEASING and ALBIS is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding GRENKELEASING Dusseldorf 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 GRENKELEASING Dusseldorf 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 GRENKELEASING Dusseldorf 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 GRENKELEASING Dusseldorf i.e., GRENKELEASING Dusseldorf and ALBIS LEASING go up and down completely randomly.
Pair Corralation between GRENKELEASING Dusseldorf and ALBIS LEASING
Assuming the 90 days trading horizon GRENKELEASING Dusseldorf is expected to under-perform the ALBIS LEASING. In addition to that, GRENKELEASING Dusseldorf is 2.77 times more volatile than ALBIS LEASING AG. It trades about -0.03 of its total potential returns per unit of risk. ALBIS LEASING AG is currently generating about 0.07 per unit of volatility. If you would invest 209.00 in ALBIS LEASING AG on October 28, 2024 and sell it today you would earn a total of 67.00 from holding ALBIS LEASING AG or generate 32.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRENKELEASING Dusseldorf vs. ALBIS LEASING AG
Performance |
| Timeline |
| GRENKELEASING Dusseldorf |
| ALBIS LEASING AG |
GRENKELEASING Dusseldorf and ALBIS LEASING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRENKELEASING Dusseldorf and ALBIS LEASING
The main advantage of trading using opposite GRENKELEASING Dusseldorf and ALBIS LEASING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRENKELEASING Dusseldorf 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.| GRENKELEASING Dusseldorf vs. Apple Inc | GRENKELEASING Dusseldorf vs. Apple Inc | GRENKELEASING Dusseldorf vs. Apple Inc | GRENKELEASING Dusseldorf vs. Apple Inc |
| ALBIS LEASING vs. SBM OFFSHORE | ALBIS LEASING vs. Eidesvik Offshore ASA | ALBIS LEASING vs. GungHo Online Entertainment | ALBIS LEASING vs. SOLSTAD OFFSHORE NK |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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