Correlation Between Canadian Utilities and ALBIS LEASING

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

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

Diversification Opportunities for Canadian Utilities and ALBIS LEASING

-0.12

Correlation Coefficient

Canadian Utilities  ALBIS LEASING

Good diversification

The 3 months correlation between Canadian and ALBIS is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Canadian Utilities Limited 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 Canadian Utilities 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 Canadian Utilities Limited 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 Canadian Utilities i.e., Canadian Utilities and ALBIS LEASING go up and down completely randomly.

Pair Corralation between Canadian Utilities and ALBIS LEASING

Assuming the 90 days horizon Canadian Utilities is expected to generate 46.89 times less return on investment than ALBIS LEASING. But when comparing it to its historical volatility, Canadian Utilities Limited is 1.39 times less risky than ALBIS LEASING. It trades about 0.01 of its potential returns per unit of risk. ALBIS LEASING AG is currently generating about 0.28 of returns per unit of risk over similar time horizon. 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 Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Canadian Utilities Limited  vs.  ALBIS LEASING AG

Canadian Utilities

Risk-Adjusted Performance

Very Weak

Over the last 90 days Canadian Utilities Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Canadian Utilities is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

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 Canadian Utilities and ALBIS LEASING

The main advantage of trading using opposite Canadian Utilities and ALBIS LEASING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canadian Utilities 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 Canadian Utilities Limited 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.