Correlation Between AEGEAN AIRLINES and ALBIS LEASING
Can any of the company-specific risk be diversified away by investing in both AEGEAN AIRLINES and ALBIS LEASING 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 ALBIS LEASING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AEGEAN AIRLINES and ALBIS LEASING AG, you can compare the effects of market volatilities on AEGEAN AIRLINES and ALBIS LEASING 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 ALBIS LEASING. Check out your portfolio center. Please also check ongoing floating volatility patterns of AEGEAN AIRLINES and ALBIS LEASING.
Diversification Opportunities for AEGEAN AIRLINES and ALBIS LEASING
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AEGEAN and ALBIS is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding AEGEAN AIRLINES and ALBIS LEASING AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALBIS LEASING AG 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 ALBIS LEASING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALBIS LEASING AG has no effect on the direction of AEGEAN AIRLINES i.e., AEGEAN AIRLINES and ALBIS LEASING go up and down completely randomly.
Pair Corralation between AEGEAN AIRLINES and ALBIS LEASING
Assuming the 90 days trading horizon AEGEAN AIRLINES is expected to under-perform the ALBIS LEASING. In addition to that, AEGEAN AIRLINES is 3.12 times more volatile than ALBIS LEASING AG. It trades about -0.04 of its total potential returns per unit of risk. ALBIS LEASING AG is currently generating about 0.11 per unit of volatility. If you would invest 272.00 in ALBIS LEASING AG on September 20, 2024 and sell it today you would earn a total of 6.00 from holding ALBIS LEASING AG or generate 2.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AEGEAN AIRLINES vs. ALBIS LEASING AG
Performance |
| Timeline |
| AEGEAN AIRLINES |
| ALBIS LEASING AG |
AEGEAN AIRLINES and ALBIS LEASING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AEGEAN AIRLINES and ALBIS LEASING
The main advantage of trading using opposite AEGEAN AIRLINES and ALBIS LEASING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AEGEAN AIRLINES position performs unexpectedly, ALBIS LEASING 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 ALBIS LEASING will offset losses from the drop in ALBIS LEASING's long position.| AEGEAN AIRLINES vs. Apple Inc | AEGEAN AIRLINES vs. Apple Inc | AEGEAN AIRLINES vs. Apple Inc | AEGEAN AIRLINES vs. Microsoft |
| ALBIS LEASING vs. SCANDMEDICAL SOLDK 040 | ALBIS LEASING vs. Warner Music Group | ALBIS LEASING vs. MeVis Medical Solutions | ALBIS LEASING 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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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