Correlation Between ALBIS LEASING and KKR REAL

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

Diversification Opportunities for ALBIS LEASING and KKR REAL

0.08

Correlation Coefficient

ALBIS LEASING  KKR REAL

Significant diversification

The 3 months correlation between ALBIS and KKR is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding ALBIS LEASING AG and KKR REAL ESTFINTR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KKR REAL ESTFINTR 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 KKR REAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KKR REAL ESTFINTR has no effect on the direction of ALBIS LEASING i.e., ALBIS LEASING and KKR REAL go up and down completely randomly.

Pair Corralation between ALBIS LEASING and KKR REAL

Assuming the 90 days trading horizon ALBIS LEASING AG is expected to generate 0.42 times more return on investment than KKR REAL. However, ALBIS LEASING AG is 2.39 times less risky than KKR REAL. It trades about 0.07 of its potential returns per unit of risk. KKR REAL ESTFINTR is currently generating about 0.0 per unit of risk. If you would invest  203.00  in ALBIS LEASING AG on October 11, 2024 and sell it today you would earn a total of  71.00  from holding ALBIS LEASING AG or generate 34.98% 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.  KKR REAL ESTFINTR

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.

KKR REAL ESTFINTR

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with ALBIS LEASING and KKR REAL

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

The idea behind ALBIS LEASING AG and KKR REAL ESTFINTR 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.