Correlation Between Gruppo Mutuionline and ALBIS LEASING

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

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

Diversification Opportunities for Gruppo Mutuionline and ALBIS LEASING

-0.26

Correlation Coefficient

Gruppo Mutuionline  ALBIS LEASING

Very good diversification

The 3 months correlation between Gruppo and ALBIS is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Gruppo Mutuionline SpA 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 Gruppo Mutuionline 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 Gruppo Mutuionline SpA 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 Gruppo Mutuionline i.e., Gruppo Mutuionline and ALBIS LEASING go up and down completely randomly.

Pair Corralation between Gruppo Mutuionline and ALBIS LEASING

Assuming the 90 days trading horizon Gruppo Mutuionline is expected to generate 1.61 times less return on investment than ALBIS LEASING. In addition to that, Gruppo Mutuionline is 2.64 times more volatile than ALBIS LEASING AG. It trades about 0.05 of its total potential returns per unit of risk. ALBIS LEASING AG is currently generating about 0.2 per unit of volatility. If you would invest  265.00  in ALBIS LEASING AG on April 24, 2025 and sell it today you would earn a total of  35.00  from holding ALBIS LEASING AG or generate 13.21% return on investment over 90 days.

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

Gruppo Mutuionline SpA  vs.  ALBIS LEASING AG

Gruppo Mutuionline SpA

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Gruppo Mutuionline SpA are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Gruppo Mutuionline may actually be approaching a critical reversion point that can send shares even higher in August 2025.

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.

Pair Trading with Gruppo Mutuionline and ALBIS LEASING

The main advantage of trading using opposite Gruppo Mutuionline and ALBIS LEASING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gruppo Mutuionline 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 Gruppo Mutuionline SpA 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.