Correlation Between GAMESTOP and ALBIS LEASING
Can any of the company-specific risk be diversified away by investing in both GAMESTOP 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 GAMESTOP and ALBIS LEASING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GAMESTOP and ALBIS LEASING AG, you can compare the effects of market volatilities on GAMESTOP 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 GAMESTOP with a short position of ALBIS LEASING. Check out your portfolio center. Please also check ongoing floating volatility patterns of GAMESTOP and ALBIS LEASING.
Diversification Opportunities for GAMESTOP and ALBIS LEASING
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GAMESTOP and ALBIS is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding GAMESTOP 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 GAMESTOP 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 GAMESTOP 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 GAMESTOP i.e., GAMESTOP and ALBIS LEASING go up and down completely randomly.
Pair Corralation between GAMESTOP and ALBIS LEASING
Assuming the 90 days trading horizon GAMESTOP is expected to generate 7.04 times more return on investment than ALBIS LEASING. However, GAMESTOP is 7.04 times more volatile than ALBIS LEASING AG. It trades about 0.07 of its potential returns per unit of risk. ALBIS LEASING AG is currently generating about 0.18 per unit of risk. If you would invest 2,150 in GAMESTOP on August 29, 2024 and sell it today you would earn a total of 721.00 from holding GAMESTOP or generate 33.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GAMESTOP vs. ALBIS LEASING AG
Performance |
| Timeline |
| GAMESTOP |
| ALBIS LEASING AG |
GAMESTOP and ALBIS LEASING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GAMESTOP and ALBIS LEASING
The main advantage of trading using opposite GAMESTOP and ALBIS LEASING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GAMESTOP 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.| GAMESTOP vs. Dave Busters Entertainment | GAMESTOP vs. ZINC MEDIA GR | GAMESTOP vs. BW OFFSHORE LTD | GAMESTOP vs. Playtech plc |
| ALBIS LEASING vs. Gol Intelligent Airlines | ALBIS LEASING vs. Mitsui Chemicals | ALBIS LEASING vs. Aegean Airlines SA | ALBIS LEASING vs. SINGAPORE AIRLINES |
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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