Correlation Between ALBIS LEASING and DENTSPLY SIRONA

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

Diversification Opportunities for ALBIS LEASING and DENTSPLY SIRONA

0.21

Correlation Coefficient

ALBIS LEASING  DENTSPLY SIRONA

Modest diversification

The 3 months correlation between ALBIS and DENTSPLY is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding ALBIS LEASING AG and DENTSPLY SIRONA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DENTSPLY SIRONA 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 DENTSPLY SIRONA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DENTSPLY SIRONA has no effect on the direction of ALBIS LEASING i.e., ALBIS LEASING and DENTSPLY SIRONA go up and down completely randomly.

Pair Corralation between ALBIS LEASING and DENTSPLY SIRONA

Assuming the 90 days trading horizon ALBIS LEASING is expected to generate 1.46 times less return on investment than DENTSPLY SIRONA. But when comparing it to its historical volatility, ALBIS LEASING AG is 2.94 times less risky than DENTSPLY SIRONA. It trades about 0.2 of its potential returns per unit of risk. DENTSPLY SIRONA is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  1,193  in DENTSPLY SIRONA on April 24, 2025 and sell it today you would earn a total of  206.00  from holding DENTSPLY SIRONA or generate 17.27% return on investment over 90 days.

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

ALBIS LEASING AG  vs.  DENTSPLY SIRONA

ALBIS LEASING AG

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ALBIS LEASING AG are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile technical and fundamental indicators, ALBIS LEASING unveiled solid returns over the last few months and may actually be approaching a breakup point.

DENTSPLY SIRONA

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in DENTSPLY SIRONA are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, DENTSPLY SIRONA unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ALBIS LEASING and DENTSPLY SIRONA

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

The idea behind ALBIS LEASING AG and DENTSPLY SIRONA 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.