Correlation Between ALBIS LEASING and ITOCHU

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

Diversification Opportunities for ALBIS LEASING and ITOCHU

0.14

Correlation Coefficient

ALBIS LEASING  ITOCHU

Average diversification

The 3 months correlation between ALBIS and ITOCHU is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding ALBIS LEASING AG and ITOCHU in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ITOCHU 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 ITOCHU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ITOCHU has no effect on the direction of ALBIS LEASING i.e., ALBIS LEASING and ITOCHU go up and down completely randomly.

Pair Corralation between ALBIS LEASING and ITOCHU

Assuming the 90 days trading horizon ALBIS LEASING AG is expected to generate 0.2 times more return on investment than ITOCHU. However, ALBIS LEASING AG is 5.12 times less risky than ITOCHU. It trades about 0.17 of its potential returns per unit of risk. ITOCHU is currently generating about 0.01 per unit of risk. If you would invest  274.00  in ALBIS LEASING AG on March 31, 2025 and sell it today you would earn a total of  6.00  from holding ALBIS LEASING AG or generate 2.19% return on investment over 90 days.

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

ALBIS LEASING AG  vs.  ITOCHU

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 11 (%) 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.

ITOCHU

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in ITOCHU are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, ITOCHU may actually be approaching a critical reversion point that can send shares even higher in July 2025.

Pair Trading with ALBIS LEASING and ITOCHU

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

The idea behind ALBIS LEASING AG and ITOCHU 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.