Correlation Between AEGEAN AIRLINES and FAIR ISAAC
Can any of the company-specific risk be diversified away by investing in both AEGEAN AIRLINES and FAIR ISAAC 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 FAIR ISAAC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AEGEAN AIRLINES and FAIR ISAAC, you can compare the effects of market volatilities on AEGEAN AIRLINES and FAIR ISAAC 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 FAIR ISAAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of AEGEAN AIRLINES and FAIR ISAAC.
Diversification Opportunities for AEGEAN AIRLINES and FAIR ISAAC
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AEGEAN and FAIR is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding AEGEAN AIRLINES and FAIR ISAAC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FAIR ISAAC 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 FAIR ISAAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FAIR ISAAC has no effect on the direction of AEGEAN AIRLINES i.e., AEGEAN AIRLINES and FAIR ISAAC go up and down completely randomly.
Pair Corralation between AEGEAN AIRLINES and FAIR ISAAC
Assuming the 90 days trading horizon AEGEAN AIRLINES is expected to generate 0.74 times more return on investment than FAIR ISAAC. However, AEGEAN AIRLINES is 1.34 times less risky than FAIR ISAAC. It trades about 0.02 of its potential returns per unit of risk. FAIR ISAAC is currently generating about -0.4 per unit of risk. If you would invest 1,018 in AEGEAN AIRLINES on October 16, 2024 and sell it today you would earn a total of 2.00 from holding AEGEAN AIRLINES or generate 0.2% 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. FAIR ISAAC
Performance |
| Timeline |
| AEGEAN AIRLINES |
| FAIR ISAAC |
AEGEAN AIRLINES and FAIR ISAAC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AEGEAN AIRLINES and FAIR ISAAC
The main advantage of trading using opposite AEGEAN AIRLINES and FAIR ISAAC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AEGEAN AIRLINES position performs unexpectedly, FAIR ISAAC 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 FAIR ISAAC will offset losses from the drop in FAIR ISAAC's long position.| AEGEAN AIRLINES vs. Teradata Corp | AEGEAN AIRLINES vs. Pure Storage | AEGEAN AIRLINES vs. CN DATANG C | AEGEAN AIRLINES vs. Data Modul AG |
| FAIR ISAAC vs. Perdoceo Education | FAIR ISAAC vs. American Public Education | FAIR ISAAC vs. CHINA EDUCATION GROUP | FAIR ISAAC vs. CHINA TONTINE WINES |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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