Correlation Between Retail Estates and ALBIS LEASING
Can any of the company-specific risk be diversified away by investing in both Retail Estates 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 Retail Estates and ALBIS LEASING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Retail Estates NV and ALBIS LEASING AG, you can compare the effects of market volatilities on Retail Estates 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 Retail Estates with a short position of ALBIS LEASING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Retail Estates and ALBIS LEASING.
Diversification Opportunities for Retail Estates and ALBIS LEASING
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Retail and ALBIS is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Retail Estates NV 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 Retail Estates 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 Retail Estates NV 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 Retail Estates i.e., Retail Estates and ALBIS LEASING go up and down completely randomly.
Pair Corralation between Retail Estates and ALBIS LEASING
Assuming the 90 days horizon Retail Estates NV is expected to under-perform the ALBIS LEASING. In addition to that, Retail Estates is 1.28 times more volatile than ALBIS LEASING AG. It trades about -0.06 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 280.00 in ALBIS LEASING AG on October 11, 2024 and sell it today you would lose (6.00) from holding ALBIS LEASING AG or give up 2.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Retail Estates NV vs. ALBIS LEASING AG
Performance |
| Timeline |
| Retail Estates NV |
| ALBIS LEASING AG |
Retail Estates and ALBIS LEASING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Retail Estates and ALBIS LEASING
The main advantage of trading using opposite Retail Estates and ALBIS LEASING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Retail Estates 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.| Retail Estates vs. Superior Plus Corp | Retail Estates vs. NMI Holdings | Retail Estates vs. SIVERS SEMICONDUCTORS AB | Retail Estates vs. Talanx AG |
| ALBIS LEASING vs. SIDETRADE EO 1 | ALBIS LEASING vs. RETAIL FOOD GROUP | ALBIS LEASING vs. The Trade Desk | ALBIS LEASING vs. MOVIE GAMES SA |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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