Correlation Between ALBIS LEASING and BW OFFSHORE

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

Diversification Opportunities for ALBIS LEASING and BW OFFSHORE

0.4

Correlation Coefficient

ALBIS LEASING  BW OFFSHORE

Very weak diversification

The 3 months correlation between ALBIS and XY81 is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding ALBIS LEASING AG and BW OFFSHORE LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BW OFFSHORE LTD 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 BW OFFSHORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BW OFFSHORE LTD has no effect on the direction of ALBIS LEASING i.e., ALBIS LEASING and BW OFFSHORE go up and down completely randomly.

Pair Corralation between ALBIS LEASING and BW OFFSHORE

Assuming the 90 days trading horizon ALBIS LEASING is expected to generate 1.71 times less return on investment than BW OFFSHORE. But when comparing it to its historical volatility, ALBIS LEASING AG is 2.92 times less risky than BW OFFSHORE. It trades about 0.28 of its potential returns per unit of risk. BW OFFSHORE LTD is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  220.00  in BW OFFSHORE LTD on April 20, 2025 and sell it today you would earn a total of  63.00  from holding BW OFFSHORE LTD or generate 28.64% return on investment over 90 days.

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

ALBIS LEASING AG  vs.  BW OFFSHORE LTD

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 fragile technical and fundamental indicators, ALBIS LEASING unveiled solid returns over the last few months and may actually be approaching a breakup point.

BW OFFSHORE LTD

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in BW OFFSHORE LTD are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, BW OFFSHORE reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ALBIS LEASING and BW OFFSHORE

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

The idea behind ALBIS LEASING AG and BW OFFSHORE LTD 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.