Correlation Between AEGEAN AIRLINES and SIVERS SEMICONDUCTORS
Can any of the company-specific risk be diversified away by investing in both AEGEAN AIRLINES and SIVERS SEMICONDUCTORS 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 AEGEAN AIRLINES and SIVERS SEMICONDUCTORS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AEGEAN AIRLINES and SIVERS SEMICONDUCTORS AB, you can compare the effects of market volatilities on AEGEAN AIRLINES and SIVERS SEMICONDUCTORS 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 AEGEAN AIRLINES with a short position of SIVERS SEMICONDUCTORS. Check out your portfolio center. Please also check ongoing floating volatility patterns of AEGEAN AIRLINES and SIVERS SEMICONDUCTORS.
Diversification Opportunities for AEGEAN AIRLINES and SIVERS SEMICONDUCTORS
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between AEGEAN and SIVERS is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding AEGEAN AIRLINES and SIVERS SEMICONDUCTORS AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIVERS SEMICONDUCTORS and AEGEAN AIRLINES 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 AEGEAN AIRLINES are associated (or correlated) with SIVERS SEMICONDUCTORS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIVERS SEMICONDUCTORS has no effect on the direction of AEGEAN AIRLINES i.e., AEGEAN AIRLINES and SIVERS SEMICONDUCTORS go up and down completely randomly.
Pair Corralation between AEGEAN AIRLINES and SIVERS SEMICONDUCTORS
Assuming the 90 days trading horizon AEGEAN AIRLINES is expected to generate 0.26 times more return on investment than SIVERS SEMICONDUCTORS. However, AEGEAN AIRLINES is 3.9 times less risky than SIVERS SEMICONDUCTORS. It trades about -0.08 of its potential returns per unit of risk. SIVERS SEMICONDUCTORS AB is currently generating about -0.06 per unit of risk. If you would invest 1,175 in AEGEAN AIRLINES on September 3, 2024 and sell it today you would lose (225.00) from holding AEGEAN AIRLINES or give up 19.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
AEGEAN AIRLINES vs. SIVERS SEMICONDUCTORS AB
Performance |
| Timeline |
| AEGEAN AIRLINES |
| SIVERS SEMICONDUCTORS |
AEGEAN AIRLINES and SIVERS SEMICONDUCTORS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AEGEAN AIRLINES and SIVERS SEMICONDUCTORS
The main advantage of trading using opposite AEGEAN AIRLINES and SIVERS SEMICONDUCTORS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AEGEAN AIRLINES position performs unexpectedly, SIVERS SEMICONDUCTORS 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 SIVERS SEMICONDUCTORS will offset losses from the drop in SIVERS SEMICONDUCTORS's long position.| AEGEAN AIRLINES vs. TOTAL GABON | AEGEAN AIRLINES vs. Walgreens Boots Alliance | AEGEAN AIRLINES vs. Peak Resources Limited |
| SIVERS SEMICONDUCTORS vs. COLUMBIA SPORTSWEAR | SIVERS SEMICONDUCTORS vs. UNIVERSAL MUSIC GROUP | SIVERS SEMICONDUCTORS vs. ANTA SPORTS PRODUCT | SIVERS SEMICONDUCTORS vs. DOCDATA |
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 Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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