Correlation Between ALBIS LEASING and Amgen

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

Diversification Opportunities for ALBIS LEASING and Amgen

-0.18

Correlation Coefficient

ALBIS LEASING  Amgen

Good diversification

The 3 months correlation between ALBIS and Amgen is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding ALBIS LEASING AG and Amgen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amgen Inc 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 Amgen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amgen Inc has no effect on the direction of ALBIS LEASING i.e., ALBIS LEASING and Amgen go up and down completely randomly.

Pair Corralation between ALBIS LEASING and Amgen

Assuming the 90 days trading horizon ALBIS LEASING AG is expected to generate 1.14 times more return on investment than Amgen. However, ALBIS LEASING is 1.14 times more volatile than Amgen Inc. It trades about -0.07 of its potential returns per unit of risk. Amgen Inc is currently generating about -0.28 per unit of risk. If you would invest  278.00  in ALBIS LEASING AG on October 10, 2024 and sell it today you would lose (4.00) from holding ALBIS LEASING AG or give up 1.44% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	94.44%
Values	Daily Returns

ALBIS LEASING AG  vs.  Amgen Inc

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.

Amgen Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Amgen Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with ALBIS LEASING and Amgen

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

The idea behind ALBIS LEASING AG and Amgen Inc 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.