Correlation Between ALBIS LEASING and GFL ENVIRONM(SUBVTSH

Can any of the company-specific risk be diversified away by investing in both ALBIS LEASING and GFL ENVIRONM(SUBVTSH 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 GFL ENVIRONM(SUBVTSH 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 GFL ENVIRONM, you can compare the effects of market volatilities on ALBIS LEASING and GFL ENVIRONM(SUBVTSH 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 GFL ENVIRONM(SUBVTSH. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALBIS LEASING and GFL ENVIRONM(SUBVTSH.

Diversification Opportunities for ALBIS LEASING and GFL ENVIRONM(SUBVTSH

0.17

Correlation Coefficient

ALBIS LEASING  GFL ENVIRONM(SUBVTSH

Average diversification

The 3 months correlation between ALBIS and GFL is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding ALBIS LEASING AG and GFL ENVIRONM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GFL ENVIRONM(SUBVTSH 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 GFL ENVIRONM(SUBVTSH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GFL ENVIRONM(SUBVTSH has no effect on the direction of ALBIS LEASING i.e., ALBIS LEASING and GFL ENVIRONM(SUBVTSH go up and down completely randomly.

Pair Corralation between ALBIS LEASING and GFL ENVIRONM(SUBVTSH

Assuming the 90 days trading horizon ALBIS LEASING is expected to generate 1.55 times less return on investment than GFL ENVIRONM(SUBVTSH. But when comparing it to its historical volatility, ALBIS LEASING AG is 2.18 times less risky than GFL ENVIRONM(SUBVTSH. It trades about 0.08 of its potential returns per unit of risk. GFL ENVIRONM is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  2,771  in GFL ENVIRONM on October 5, 2024 and sell it today you would earn a total of  1,509  from holding GFL ENVIRONM or generate 54.46% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

ALBIS LEASING AG  vs.  GFL ENVIRONM

ALBIS LEASING AG

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days ALBIS LEASING AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, ALBIS LEASING is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

GFL ENVIRONM(SUBVTSH

Risk-Adjusted Performance

0 of 100

Good

Over the last 90 days GFL ENVIRONM has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly uncertain basic indicators, GFL ENVIRONM(SUBVTSH reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ALBIS LEASING and GFL ENVIRONM(SUBVTSH

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

The idea behind ALBIS LEASING AG and GFL ENVIRONM 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.

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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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.