Correlation Between ALBIS LEASING and TROPHY GAMES

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

Diversification Opportunities for ALBIS LEASING and TROPHY GAMES

-0.01

Correlation Coefficient

ALBIS LEASING  TROPHY GAMES

Good diversification

The 3 months correlation between ALBIS and TROPHY is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding ALBIS LEASING AG and TROPHY GAMES DEV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TROPHY GAMES DEV 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 TROPHY GAMES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TROPHY GAMES DEV has no effect on the direction of ALBIS LEASING i.e., ALBIS LEASING and TROPHY GAMES go up and down completely randomly.

Pair Corralation between ALBIS LEASING and TROPHY GAMES

Assuming the 90 days trading horizon ALBIS LEASING is expected to generate 1.81 times less return on investment than TROPHY GAMES. But when comparing it to its historical volatility, ALBIS LEASING AG is 3.29 times less risky than TROPHY GAMES. It trades about 0.13 of its potential returns per unit of risk. TROPHY GAMES DEV is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  50.00  in TROPHY GAMES DEV on October 10, 2024 and sell it today you would earn a total of  30.00  from holding TROPHY GAMES DEV or generate 60.0% return on investment over 90 days.

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

ALBIS LEASING AG  vs.  TROPHY GAMES DEV

ALBIS LEASING AG

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in ALBIS LEASING AG are ranked lower than 1 (%) 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.

TROPHY GAMES DEV

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days TROPHY GAMES DEV has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with ALBIS LEASING and TROPHY GAMES

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

The idea behind ALBIS LEASING AG and TROPHY GAMES DEV 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 Transaction History module to view history of all your transactions and understand their impact on performance.