Correlation Between Monster Beverage and ALBIS LEASING
Can any of the company-specific risk be diversified away by investing in both Monster Beverage 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 Monster Beverage and ALBIS LEASING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Monster Beverage Corp and ALBIS LEASING AG, you can compare the effects of market volatilities on Monster Beverage 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 Monster Beverage with a short position of ALBIS LEASING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Monster Beverage and ALBIS LEASING.
Diversification Opportunities for Monster Beverage and ALBIS LEASING
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Monster and ALBIS is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Monster Beverage Corp 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 Monster Beverage 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 Monster Beverage Corp 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 Monster Beverage i.e., Monster Beverage and ALBIS LEASING go up and down completely randomly.
Pair Corralation between Monster Beverage and ALBIS LEASING
Assuming the 90 days trading horizon Monster Beverage Corp is expected to under-perform the ALBIS LEASING. But the stock apears to be less risky and, when comparing its historical volatility, Monster Beverage Corp is 1.09 times less risky than ALBIS LEASING. The stock trades about -0.14 of its potential returns per unit of risk. The ALBIS LEASING AG is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 278.00 in ALBIS LEASING AG on October 15, 2024 and sell it today you would lose (4.00) from holding ALBIS LEASING AG or give up 1.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Monster Beverage Corp vs. ALBIS LEASING AG
Performance |
| Timeline |
| Monster Beverage Corp |
| ALBIS LEASING AG |
Monster Beverage and ALBIS LEASING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Monster Beverage and ALBIS LEASING
The main advantage of trading using opposite Monster Beverage and ALBIS LEASING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Monster Beverage 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.| Monster Beverage vs. Aya Gold Silver | Monster Beverage vs. GALENA MINING LTD | Monster Beverage vs. United Airlines Holdings | Monster Beverage vs. MINCO SILVER |
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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