Correlation Between ALBIS LEASING and Sporttotal
Can any of the company-specific risk be diversified away by investing in both ALBIS LEASING and Sporttotal 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 Sporttotal 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 Sporttotal AG, you can compare the effects of market volatilities on ALBIS LEASING and Sporttotal 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 Sporttotal. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALBIS LEASING and Sporttotal.
Diversification Opportunities for ALBIS LEASING and Sporttotal
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ALBIS and Sporttotal is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding ALBIS LEASING AG and Sporttotal AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sporttotal AG 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 Sporttotal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sporttotal AG has no effect on the direction of ALBIS LEASING i.e., ALBIS LEASING and Sporttotal go up and down completely randomly.
Pair Corralation between ALBIS LEASING and Sporttotal
Assuming the 90 days trading horizon ALBIS LEASING AG is expected to generate 0.05 times more return on investment than Sporttotal. However, ALBIS LEASING AG is 18.46 times less risky than Sporttotal. It trades about 0.19 of its potential returns per unit of risk. Sporttotal AG is currently generating about -0.16 per unit of risk. If you would invest 264.00 in ALBIS LEASING AG on September 14, 2024 and sell it today you would earn a total of 14.00 from holding ALBIS LEASING AG or generate 5.3% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
ALBIS LEASING AG vs. Sporttotal AG
Performance |
Timeline |
ALBIS LEASING AG |
Sporttotal AG |
ALBIS LEASING and Sporttotal Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ALBIS LEASING and Sporttotal
The main advantage of trading using opposite ALBIS LEASING and Sporttotal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALBIS LEASING position performs unexpectedly, Sporttotal 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 Sporttotal will offset losses from the drop in Sporttotal's long position.ALBIS LEASING vs. Apple Inc | ALBIS LEASING vs. Apple Inc | ALBIS LEASING vs. Apple Inc | ALBIS LEASING vs. Apple Inc |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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