Correlation Between MOVIE GAMES and Aegean Airlines
Can any of the company-specific risk be diversified away by investing in both MOVIE GAMES 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 MOVIE GAMES and Aegean Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MOVIE GAMES SA and Aegean Airlines SA, you can compare the effects of market volatilities on MOVIE GAMES 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 MOVIE GAMES with a short position of Aegean Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOVIE GAMES and Aegean Airlines.
Diversification Opportunities for MOVIE GAMES and Aegean Airlines
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between MOVIE and Aegean is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding MOVIE GAMES SA and Aegean Airlines SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aegean Airlines SA and MOVIE GAMES 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 MOVIE GAMES SA 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 SA has no effect on the direction of MOVIE GAMES i.e., MOVIE GAMES and Aegean Airlines go up and down completely randomly.
Pair Corralation between MOVIE GAMES and Aegean Airlines
Assuming the 90 days horizon MOVIE GAMES SA is expected to generate 2.2 times more return on investment than Aegean Airlines. However, MOVIE GAMES is 2.2 times more volatile than Aegean Airlines SA. It trades about 0.2 of its potential returns per unit of risk. Aegean Airlines SA is currently generating about 0.11 per unit of risk. If you would invest 351.00 in MOVIE GAMES SA on November 5, 2024 and sell it today you would earn a total of 63.00 from holding MOVIE GAMES SA or generate 17.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MOVIE GAMES SA vs. Aegean Airlines SA
Performance |
| Timeline |
| MOVIE GAMES SA |
| Aegean Airlines SA |
MOVIE GAMES and Aegean Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MOVIE GAMES and Aegean Airlines
The main advantage of trading using opposite MOVIE GAMES and Aegean Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOVIE GAMES 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' long position.| MOVIE GAMES vs. PARKEN Sport Entertainment | MOVIE GAMES vs. CENTURIA OFFICE REIT | MOVIE GAMES vs. SIEM OFFSHORE NEW | MOVIE GAMES vs. GREENX METALS LTD |
| Aegean Airlines vs. Aya Gold Silver | Aegean Airlines vs. Yanzhou Coal Mining | Aegean Airlines vs. STRAYER EDUCATION | Aegean Airlines vs. ANGLO ASIAN MINING |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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