Correlation Between SIVERS SEMICONDUCTORS and AEGEAN AIRLINES
Can any of the company-specific risk be diversified away by investing in both SIVERS SEMICONDUCTORS and AEGEAN AIRLINES 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 SIVERS SEMICONDUCTORS and AEGEAN AIRLINES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SIVERS SEMICONDUCTORS AB and AEGEAN AIRLINES, you can compare the effects of market volatilities on SIVERS SEMICONDUCTORS and AEGEAN AIRLINES 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 SIVERS SEMICONDUCTORS with a short position of AEGEAN AIRLINES. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIVERS SEMICONDUCTORS and AEGEAN AIRLINES.
Diversification Opportunities for SIVERS SEMICONDUCTORS and AEGEAN AIRLINES
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SIVERS and AEGEAN is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding SIVERS SEMICONDUCTORS AB and AEGEAN AIRLINES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AEGEAN AIRLINES and SIVERS SEMICONDUCTORS 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 SIVERS SEMICONDUCTORS AB are associated (or correlated) with AEGEAN AIRLINES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AEGEAN AIRLINES has no effect on the direction of SIVERS SEMICONDUCTORS i.e., SIVERS SEMICONDUCTORS and AEGEAN AIRLINES go up and down completely randomly.
Pair Corralation between SIVERS SEMICONDUCTORS and AEGEAN AIRLINES
Assuming the 90 days horizon SIVERS SEMICONDUCTORS AB is expected to under-perform the AEGEAN AIRLINES. In addition to that, SIVERS SEMICONDUCTORS is 8.11 times more volatile than AEGEAN AIRLINES. It trades about -0.06 of its total potential returns per unit of risk. AEGEAN AIRLINES is currently generating about -0.09 per unit of volatility. If you would invest 982.00 in AEGEAN AIRLINES on September 1, 2024 and sell it today you would lose (32.00) from holding AEGEAN AIRLINES or give up 3.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SIVERS SEMICONDUCTORS AB vs. AEGEAN AIRLINES
Performance |
| Timeline |
| SIVERS SEMICONDUCTORS |
| AEGEAN AIRLINES |
SIVERS SEMICONDUCTORS and AEGEAN AIRLINES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SIVERS SEMICONDUCTORS and AEGEAN AIRLINES
The main advantage of trading using opposite SIVERS SEMICONDUCTORS and AEGEAN AIRLINES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIVERS SEMICONDUCTORS position performs unexpectedly, AEGEAN AIRLINES 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 AEGEAN AIRLINES will offset losses from the drop in AEGEAN AIRLINES's long position.The idea behind SIVERS SEMICONDUCTORS AB and AEGEAN AIRLINES 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.| AEGEAN AIRLINES vs. SIVERS SEMICONDUCTORS AB | AEGEAN AIRLINES vs. Darden Restaurants | AEGEAN AIRLINES vs. Reliance Steel Aluminum | AEGEAN AIRLINES vs. Q2M Managementberatung AG |
Check out your portfolio center.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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |