Correlation Between MidCap Financial and ALBIS LEASING

Can any of the company-specific risk be diversified away by investing in both MidCap Financial and ALBIS LEASING 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 MidCap Financial and ALBIS LEASING into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between MidCap Financial Investment and ALBIS LEASING AG, you can compare the effects of market volatilities on MidCap Financial and ALBIS LEASING 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 MidCap Financial with a short position of ALBIS LEASING. Check out your portfolio center. Please also check ongoing floating volatility patterns of MidCap Financial and ALBIS LEASING.

Diversification Opportunities for MidCap Financial and ALBIS LEASING

0.52

Correlation Coefficient

MidCap Financial  ALBIS LEASING

Very weak diversification

The 3 months correlation between MidCap and ALBIS is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding MidCap Financial Investment and ALBIS LEASING AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALBIS LEASING AG and MidCap Financial 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 MidCap Financial Investment are associated (or correlated) with ALBIS LEASING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALBIS LEASING AG has no effect on the direction of MidCap Financial i.e., MidCap Financial and ALBIS LEASING go up and down completely randomly.

Pair Corralation between MidCap Financial and ALBIS LEASING

Assuming the 90 days trading horizon MidCap Financial is expected to generate 1.35 times less return on investment than ALBIS LEASING. In addition to that, MidCap Financial is 1.55 times more volatile than ALBIS LEASING AG. It trades about 0.13 of its total potential returns per unit of risk. ALBIS LEASING AG is currently generating about 0.28 per unit of volatility. If you would invest  265.00  in ALBIS LEASING AG on April 23, 2025 and sell it today you would earn a total of  45.00  from holding ALBIS LEASING AG or generate 16.98% return on investment over 90 days.

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

MidCap Financial Investment  vs.  ALBIS LEASING AG

MidCap Financial Inv

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in MidCap Financial Investment are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, MidCap Financial may actually be approaching a critical reversion point that can send shares even higher in August 2025.

ALBIS LEASING AG

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in ALBIS LEASING AG are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain technical and fundamental indicators, ALBIS LEASING unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with MidCap Financial and ALBIS LEASING

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

The idea behind MidCap Financial Investment and ALBIS LEASING AG 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.