Correlation Between AEGEAN AIRLINES and MAVEN WIRELESS
Can any of the company-specific risk be diversified away by investing in both AEGEAN AIRLINES and MAVEN WIRELESS 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 MAVEN WIRELESS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AEGEAN AIRLINES and MAVEN WIRELESS SWEDEN, you can compare the effects of market volatilities on AEGEAN AIRLINES and MAVEN WIRELESS 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 MAVEN WIRELESS. Check out your portfolio center. Please also check ongoing floating volatility patterns of AEGEAN AIRLINES and MAVEN WIRELESS.
Diversification Opportunities for AEGEAN AIRLINES and MAVEN WIRELESS
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AEGEAN and MAVEN is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding AEGEAN AIRLINES and MAVEN WIRELESS SWEDEN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAVEN WIRELESS SWEDEN 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 MAVEN WIRELESS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAVEN WIRELESS SWEDEN has no effect on the direction of AEGEAN AIRLINES i.e., AEGEAN AIRLINES and MAVEN WIRELESS go up and down completely randomly.
Pair Corralation between AEGEAN AIRLINES and MAVEN WIRELESS
Assuming the 90 days trading horizon AEGEAN AIRLINES is expected to under-perform the MAVEN WIRELESS. But the stock apears to be less risky and, when comparing its historical volatility, AEGEAN AIRLINES is 1.39 times less risky than MAVEN WIRELESS. The stock trades about -0.25 of its potential returns per unit of risk. The MAVEN WIRELESS SWEDEN is currently generating about -0.16 of returns per unit of risk over similar time horizon. If you would invest 97.00 in MAVEN WIRELESS SWEDEN on August 24, 2024 and sell it today you would lose (8.00) from holding MAVEN WIRELESS SWEDEN or give up 8.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AEGEAN AIRLINES vs. MAVEN WIRELESS SWEDEN
Performance |
| Timeline |
| AEGEAN AIRLINES |
| MAVEN WIRELESS SWEDEN |
AEGEAN AIRLINES and MAVEN WIRELESS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AEGEAN AIRLINES and MAVEN WIRELESS
The main advantage of trading using opposite AEGEAN AIRLINES and MAVEN WIRELESS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AEGEAN AIRLINES position performs unexpectedly, MAVEN WIRELESS 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 MAVEN WIRELESS will offset losses from the drop in MAVEN WIRELESS's long position.| AEGEAN AIRLINES vs. Apple Inc | AEGEAN AIRLINES vs. Apple Inc | AEGEAN AIRLINES vs. Apple Inc | AEGEAN AIRLINES vs. Apple Inc |
| MAVEN WIRELESS vs. T Mobile | MAVEN WIRELESS vs. ATT Inc | MAVEN WIRELESS vs. Deutsche Telekom AG | MAVEN WIRELESS vs. Nippon Telegraph and |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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