Correlation Between LOANDEPOT INC and ALBIS LEASING
Can any of the company-specific risk be diversified away by investing in both LOANDEPOT INC 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 LOANDEPOT INC and ALBIS LEASING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LOANDEPOT INC A and ALBIS LEASING AG, you can compare the effects of market volatilities on LOANDEPOT INC 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 LOANDEPOT INC with a short position of ALBIS LEASING. Check out your portfolio center. Please also check ongoing floating volatility patterns of LOANDEPOT INC and ALBIS LEASING.
Diversification Opportunities for LOANDEPOT INC and ALBIS LEASING
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between LOANDEPOT and ALBIS is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding LOANDEPOT INC A 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 LOANDEPOT INC 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 LOANDEPOT INC A 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 LOANDEPOT INC i.e., LOANDEPOT INC and ALBIS LEASING go up and down completely randomly.
Pair Corralation between LOANDEPOT INC and ALBIS LEASING
Assuming the 90 days horizon LOANDEPOT INC A is expected to generate 5.15 times more return on investment than ALBIS LEASING. However, LOANDEPOT INC is 5.15 times more volatile than ALBIS LEASING AG. It trades about 0.02 of its potential returns per unit of risk. ALBIS LEASING AG is currently generating about 0.08 per unit of risk. If you would invest 174.00 in LOANDEPOT INC A on October 16, 2024 and sell it today you would lose (13.00) from holding LOANDEPOT INC A or give up 7.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
LOANDEPOT INC A vs. ALBIS LEASING AG
Performance |
| Timeline |
| LOANDEPOT INC A |
| ALBIS LEASING AG |
LOANDEPOT INC and ALBIS LEASING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LOANDEPOT INC and ALBIS LEASING
The main advantage of trading using opposite LOANDEPOT INC and ALBIS LEASING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LOANDEPOT INC 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.| LOANDEPOT INC vs. SK TELECOM TDADR | LOANDEPOT INC vs. Chunghwa Telecom Co | LOANDEPOT INC vs. Entravision Communications | LOANDEPOT INC vs. Telecom Argentina SA |
| ALBIS LEASING vs. ELECTRONIC ARTS | ALBIS LEASING vs. Samsung Electronics Co | ALBIS LEASING vs. Benchmark Electronics | ALBIS LEASING vs. KIMBALL ELECTRONICS |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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