Correlation Between AEGEAN AIRLINES and Daldrup Shne
Can any of the company-specific risk be diversified away by investing in both AEGEAN AIRLINES and Daldrup Shne 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 Daldrup Shne into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AEGEAN AIRLINES and Daldrup Shne Aktiengesellschaft, you can compare the effects of market volatilities on AEGEAN AIRLINES and Daldrup Shne 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 Daldrup Shne. Check out your portfolio center. Please also check ongoing floating volatility patterns of AEGEAN AIRLINES and Daldrup Shne.
Diversification Opportunities for AEGEAN AIRLINES and Daldrup Shne
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AEGEAN and Daldrup is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding AEGEAN AIRLINES and Daldrup Shne Aktiengesellschaf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daldrup Shne Aktieng 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 Daldrup Shne. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daldrup Shne Aktieng has no effect on the direction of AEGEAN AIRLINES i.e., AEGEAN AIRLINES and Daldrup Shne go up and down completely randomly.
Pair Corralation between AEGEAN AIRLINES and Daldrup Shne
Assuming the 90 days trading horizon AEGEAN AIRLINES is expected to generate 0.6 times more return on investment than Daldrup Shne. However, AEGEAN AIRLINES is 1.66 times less risky than Daldrup Shne. It trades about 0.08 of its potential returns per unit of risk. Daldrup Shne Aktiengesellschaft is currently generating about 0.03 per unit of risk. If you would invest 493.00 in AEGEAN AIRLINES on September 12, 2024 and sell it today you would earn a total of 512.00 from holding AEGEAN AIRLINES or generate 103.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AEGEAN AIRLINES vs. Daldrup Shne Aktiengesellschaf
Performance |
| Timeline |
| AEGEAN AIRLINES |
| Daldrup Shne Aktieng |
AEGEAN AIRLINES and Daldrup Shne Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AEGEAN AIRLINES and Daldrup Shne
The main advantage of trading using opposite AEGEAN AIRLINES and Daldrup Shne positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AEGEAN AIRLINES position performs unexpectedly, Daldrup Shne 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 Daldrup Shne will offset losses from the drop in Daldrup Shne's long position.| AEGEAN AIRLINES vs. Apple Inc | AEGEAN AIRLINES vs. Apple Inc | AEGEAN AIRLINES vs. Apple Inc | AEGEAN AIRLINES vs. Apple Inc |
| Daldrup Shne vs. CDN IMPERIAL BANK | Daldrup Shne vs. TFS FINANCIAL | Daldrup Shne vs. ALIOR BANK | Daldrup Shne vs. AEGEAN AIRLINES |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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