Correlation Between AEGEAN AIRLINES and Tradeweb Markets
Can any of the company-specific risk be diversified away by investing in both AEGEAN AIRLINES and Tradeweb Markets 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 Tradeweb Markets into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AEGEAN AIRLINES and Tradeweb Markets, you can compare the effects of market volatilities on AEGEAN AIRLINES and Tradeweb Markets 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 Tradeweb Markets. Check out your portfolio center. Please also check ongoing floating volatility patterns of AEGEAN AIRLINES and Tradeweb Markets.
Diversification Opportunities for AEGEAN AIRLINES and Tradeweb Markets
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between AEGEAN and Tradeweb is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding AEGEAN AIRLINES and Tradeweb Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tradeweb Markets 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 Tradeweb Markets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tradeweb Markets has no effect on the direction of AEGEAN AIRLINES i.e., AEGEAN AIRLINES and Tradeweb Markets go up and down completely randomly.
Pair Corralation between AEGEAN AIRLINES and Tradeweb Markets
Assuming the 90 days trading horizon AEGEAN AIRLINES is expected to generate 0.75 times more return on investment than Tradeweb Markets. However, AEGEAN AIRLINES is 1.34 times less risky than Tradeweb Markets. It trades about 0.16 of its potential returns per unit of risk. Tradeweb Markets is currently generating about 0.09 per unit of risk. If you would invest 991.00 in AEGEAN AIRLINES on October 14, 2024 and sell it today you would earn a total of 33.00 from holding AEGEAN AIRLINES or generate 3.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AEGEAN AIRLINES vs. Tradeweb Markets
Performance |
| Timeline |
| AEGEAN AIRLINES |
| Tradeweb Markets |
AEGEAN AIRLINES and Tradeweb Markets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AEGEAN AIRLINES and Tradeweb Markets
The main advantage of trading using opposite AEGEAN AIRLINES and Tradeweb Markets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AEGEAN AIRLINES position performs unexpectedly, Tradeweb Markets 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 Tradeweb Markets will offset losses from the drop in Tradeweb Markets' long position.| AEGEAN AIRLINES vs. TITANIUM TRANSPORTGROUP | AEGEAN AIRLINES vs. Yuexiu Transport Infrastructure | AEGEAN AIRLINES vs. Liberty Broadband | AEGEAN AIRLINES vs. NAGOYA RAILROAD |
| Tradeweb Markets vs. China Eastern Airlines | Tradeweb Markets vs. United Airlines Holdings | Tradeweb Markets vs. AEGEAN AIRLINES | Tradeweb Markets vs. Virtus Investment Partners |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |