Correlation Between ALBIS LEASING and Suntory Beverage

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

Diversification Opportunities for ALBIS LEASING and Suntory Beverage

-0.8

Correlation Coefficient

ALBIS LEASING  Suntory Beverage

Pay attention - limited upside

The 3 months correlation between ALBIS and Suntory is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding ALBIS LEASING AG and Suntory Beverage Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suntory Beverage Food 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 Suntory Beverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suntory Beverage Food has no effect on the direction of ALBIS LEASING i.e., ALBIS LEASING and Suntory Beverage go up and down completely randomly.

Pair Corralation between ALBIS LEASING and Suntory Beverage

Assuming the 90 days trading horizon ALBIS LEASING AG is expected to generate 0.21 times more return on investment than Suntory Beverage. However, ALBIS LEASING AG is 4.83 times less risky than Suntory Beverage. It trades about 0.09 of its potential returns per unit of risk. Suntory Beverage Food is currently generating about -0.07 per unit of risk. If you would invest  272.00  in ALBIS LEASING AG on September 24, 2024 and sell it today you would earn a total of  6.00  from holding ALBIS LEASING AG or generate 2.21% return on investment over 90 days.

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

ALBIS LEASING AG  vs.  Suntory Beverage Food

ALBIS LEASING AG

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ALBIS LEASING AG are ranked lower than 7 (%) 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 newest stock price uproar, may contribute to short-horizon losses for the private investors.

Suntory Beverage Food

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Suntory Beverage Food has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with ALBIS LEASING and Suntory Beverage

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

The idea behind ALBIS LEASING AG and Suntory Beverage Food 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.