Correlation Between MasterBeef Group and Albany International

Can any of the company-specific risk be diversified away by investing in both MasterBeef Group and Albany International 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 MasterBeef Group and Albany International into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between MasterBeef Group Ordinary and Albany International, you can compare the effects of market volatilities on MasterBeef Group and Albany International 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 MasterBeef Group with a short position of Albany International. Check out your portfolio center. Please also check ongoing floating volatility patterns of MasterBeef Group and Albany International.

Diversification Opportunities for MasterBeef Group and Albany International

0.35

Correlation Coefficient

MasterBeef Group  Albany International

Weak diversification

The 3 months correlation between MasterBeef and Albany is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding MasterBeef Group Ordinary and Albany International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Albany International and MasterBeef Group 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 MasterBeef Group Ordinary are associated (or correlated) with Albany International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Albany International has no effect on the direction of MasterBeef Group i.e., MasterBeef Group and Albany International go up and down completely randomly.

Pair Corralation between MasterBeef Group and Albany International

Allowing for the 90-day total investment horizon MasterBeef Group Ordinary is expected to generate 2.65 times more return on investment than Albany International. However, MasterBeef Group is 2.65 times more volatile than Albany International. It trades about 0.31 of its potential returns per unit of risk. Albany International is currently generating about -0.04 per unit of risk. If you would invest  329.00  in MasterBeef Group Ordinary on May 6, 2025 and sell it today you would earn a total of  1,134  from holding MasterBeef Group Ordinary or generate 344.68% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

MasterBeef Group Ordinary  vs.  Albany International

MasterBeef Group Ordinary

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in MasterBeef Group Ordinary are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady fundamental drivers, MasterBeef Group sustained solid returns over the last few months and may actually be approaching a breakup point.

Albany International

Risk-Adjusted Performance

Very Weak

Over the last 90 days Albany International has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's forward indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with MasterBeef Group and Albany International

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

The idea behind MasterBeef Group Ordinary and Albany International 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.