Correlation Between AEGEAN AIRLINES and CTT -
Can any of the company-specific risk be diversified away by investing in both AEGEAN AIRLINES and CTT - 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 CTT - into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AEGEAN AIRLINES and CTT Correios, you can compare the effects of market volatilities on AEGEAN AIRLINES and CTT - 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 CTT -. Check out your portfolio center. Please also check ongoing floating volatility patterns of AEGEAN AIRLINES and CTT -.
Diversification Opportunities for AEGEAN AIRLINES and CTT -
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AEGEAN and CTT is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding AEGEAN AIRLINES and CTT Correios in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CTT Correios 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 CTT -. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CTT Correios has no effect on the direction of AEGEAN AIRLINES i.e., AEGEAN AIRLINES and CTT - go up and down completely randomly.
Pair Corralation between AEGEAN AIRLINES and CTT -
Assuming the 90 days trading horizon AEGEAN AIRLINES is expected to generate 58.45 times less return on investment than CTT -. But when comparing it to its historical volatility, AEGEAN AIRLINES is 1.27 times less risky than CTT -. It trades about 0.01 of its potential returns per unit of risk. CTT Correios is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 541.00 in CTT Correios on November 7, 2024 and sell it today you would earn a total of 74.00 from holding CTT Correios or generate 13.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
AEGEAN AIRLINES vs. CTT Correios
Performance |
| Timeline |
| AEGEAN AIRLINES |
| CTT Correios |
AEGEAN AIRLINES and CTT - Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AEGEAN AIRLINES and CTT -
The main advantage of trading using opposite AEGEAN AIRLINES and CTT - positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AEGEAN AIRLINES position performs unexpectedly, CTT - 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 CTT - will offset losses from the drop in CTT -'s long position.| AEGEAN AIRLINES vs. Apple Inc | AEGEAN AIRLINES vs. Apple Inc | AEGEAN AIRLINES vs. Apple Inc | AEGEAN AIRLINES vs. Apple Inc |
| CTT - vs. ZhongAn Online P | CTT - vs. American Eagle Outfitters | CTT - vs. Gruppo Mutuionline SpA | CTT - vs. ARDAGH METAL PACDL 0001 |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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