Correlation Between DXC Technology and Aegean Airlines
Can any of the company-specific risk be diversified away by investing in both DXC Technology 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 DXC Technology and Aegean Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DXC Technology Co and Aegean Airlines SA, you can compare the effects of market volatilities on DXC Technology 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 DXC Technology with a short position of Aegean Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of DXC Technology and Aegean Airlines.
Diversification Opportunities for DXC Technology and Aegean Airlines
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between DXC and Aegean is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding DXC Technology Co 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 DXC Technology 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 DXC Technology Co 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 DXC Technology i.e., DXC Technology and Aegean Airlines go up and down completely randomly.
Pair Corralation between DXC Technology and Aegean Airlines
Assuming the 90 days trading horizon DXC Technology Co is expected to generate 1.79 times more return on investment than Aegean Airlines. However, DXC Technology is 1.79 times more volatile than Aegean Airlines SA. It trades about 0.18 of its potential returns per unit of risk. Aegean Airlines SA is currently generating about -0.29 per unit of risk. If you would invest 1,847 in DXC Technology Co on August 24, 2024 and sell it today you would earn a total of 227.00 from holding DXC Technology Co or generate 12.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
DXC Technology Co vs. Aegean Airlines SA
Performance |
| Timeline |
| DXC Technology |
| Aegean Airlines SA |
DXC Technology and Aegean Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DXC Technology and Aegean Airlines
The main advantage of trading using opposite DXC Technology and Aegean Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DXC Technology 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.| DXC Technology vs. Pembina Pipeline Corp | DXC Technology vs. Wyndham Hotels Resorts | DXC Technology vs. Xenia Hotels Resorts | DXC Technology vs. Major Drilling Group |
| Aegean Airlines vs. RYANAIR HLDGS ADR | Aegean Airlines vs. Southwest Airlines Co | Aegean Airlines vs. China Southern Airlines | Aegean Airlines vs. Ryanair Holdings plc |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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