Correlation Between ALBIS LEASING and OURGAME INTHOLDL-00005

Can any of the company-specific risk be diversified away by investing in both ALBIS LEASING and OURGAME INTHOLDL-00005 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 ALBIS LEASING and OURGAME INTHOLDL-00005 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ALBIS LEASING AG and OURGAME INTHOLDL 00005, you can compare the effects of market volatilities on ALBIS LEASING and OURGAME INTHOLDL-00005 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 ALBIS LEASING with a short position of OURGAME INTHOLDL-00005. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALBIS LEASING and OURGAME INTHOLDL-00005.

Diversification Opportunities for ALBIS LEASING and OURGAME INTHOLDL-00005

0.0

Correlation Coefficient

ALBIS LEASING  OURGAME INTHOLDL-00005

Pay attention - limited upside

The 3 months correlation between ALBIS and OURGAME is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ALBIS LEASING AG and OURGAME INTHOLDL 00005 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OURGAME INTHOLDL 00005 and ALBIS LEASING 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 ALBIS LEASING AG are associated (or correlated) with OURGAME INTHOLDL-00005. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OURGAME INTHOLDL 00005 has no effect on the direction of ALBIS LEASING i.e., ALBIS LEASING and OURGAME INTHOLDL-00005 go up and down completely randomly.

Pair Corralation between ALBIS LEASING and OURGAME INTHOLDL-00005

Assuming the 90 days trading horizon ALBIS LEASING is expected to generate 4.23 times less return on investment than OURGAME INTHOLDL-00005. But when comparing it to its historical volatility, ALBIS LEASING AG is 11.58 times less risky than OURGAME INTHOLDL-00005. It trades about 0.08 of its potential returns per unit of risk. OURGAME INTHOLDL 00005 is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  3.50  in OURGAME INTHOLDL 00005 on September 23, 2024 and sell it today you would lose (1.90) from holding OURGAME INTHOLDL 00005 or give up 54.29% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.8%
Values	Daily Returns

ALBIS LEASING AG  vs.  OURGAME INTHOLDL 00005

ALBIS LEASING AG

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ALBIS LEASING AG are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical and fundamental indicators, ALBIS LEASING is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

OURGAME INTHOLDL 00005

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days OURGAME INTHOLDL 00005 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, OURGAME INTHOLDL-00005 is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with ALBIS LEASING and OURGAME INTHOLDL-00005

The main advantage of trading using opposite ALBIS LEASING and OURGAME INTHOLDL-00005 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALBIS LEASING position performs unexpectedly, OURGAME INTHOLDL-00005 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 OURGAME INTHOLDL-00005 will offset losses from the drop in OURGAME INTHOLDL-00005's long position.

The idea behind ALBIS LEASING AG and OURGAME INTHOLDL 00005 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.