Correlation Between AEGEAN AIRLINES and Astral Foods
Can any of the company-specific risk be diversified away by investing in both AEGEAN AIRLINES and Astral Foods 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 Astral Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AEGEAN AIRLINES and Astral Foods Limited, you can compare the effects of market volatilities on AEGEAN AIRLINES and Astral Foods 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 Astral Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of AEGEAN AIRLINES and Astral Foods.
Diversification Opportunities for AEGEAN AIRLINES and Astral Foods
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between AEGEAN and Astral is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding AEGEAN AIRLINES and Astral Foods Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astral Foods Limited 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 Astral Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astral Foods Limited has no effect on the direction of AEGEAN AIRLINES i.e., AEGEAN AIRLINES and Astral Foods go up and down completely randomly.
Pair Corralation between AEGEAN AIRLINES and Astral Foods
Assuming the 90 days trading horizon AEGEAN AIRLINES is expected to generate 0.65 times more return on investment than Astral Foods. However, AEGEAN AIRLINES is 1.53 times less risky than Astral Foods. It trades about 0.08 of its potential returns per unit of risk. Astral Foods Limited is currently generating about 0.02 per unit of risk. If you would invest 536.00 in AEGEAN AIRLINES on October 11, 2024 and sell it today you would earn a total of 506.00 from holding AEGEAN AIRLINES or generate 94.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AEGEAN AIRLINES vs. Astral Foods Limited
Performance |
| Timeline |
| AEGEAN AIRLINES |
| Astral Foods Limited |
AEGEAN AIRLINES and Astral Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AEGEAN AIRLINES and Astral Foods
The main advantage of trading using opposite AEGEAN AIRLINES and Astral Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AEGEAN AIRLINES position performs unexpectedly, Astral Foods 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 Astral Foods will offset losses from the drop in Astral Foods' long position.| AEGEAN AIRLINES vs. T MOBILE INCDL 00001 | AEGEAN AIRLINES vs. INTERSHOP Communications Aktiengesellschaft | AEGEAN AIRLINES vs. Penn National Gaming | AEGEAN AIRLINES vs. CONTAGIOUS GAMING INC |
| Astral Foods vs. T Mobile | Astral Foods vs. Aluminum of | Astral Foods vs. Yuexiu Transport Infrastructure | Astral Foods vs. Ribbon Communications |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Transaction History View history of all your transactions and understand their impact on performance |