Correlation Between AEGEAN AIRLINES and HMS Bergbau
Can any of the company-specific risk be diversified away by investing in both AEGEAN AIRLINES and HMS Bergbau 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 HMS Bergbau into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AEGEAN AIRLINES and HMS Bergbau AG, you can compare the effects of market volatilities on AEGEAN AIRLINES and HMS Bergbau 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 HMS Bergbau. Check out your portfolio center. Please also check ongoing floating volatility patterns of AEGEAN AIRLINES and HMS Bergbau.
Diversification Opportunities for AEGEAN AIRLINES and HMS Bergbau
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AEGEAN and HMS is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding AEGEAN AIRLINES and HMS Bergbau AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HMS Bergbau 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 HMS Bergbau. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HMS Bergbau AG has no effect on the direction of AEGEAN AIRLINES i.e., AEGEAN AIRLINES and HMS Bergbau go up and down completely randomly.
Pair Corralation between AEGEAN AIRLINES and HMS Bergbau
Assuming the 90 days trading horizon AEGEAN AIRLINES is expected to under-perform the HMS Bergbau. In addition to that, AEGEAN AIRLINES is 1.95 times more volatile than HMS Bergbau AG. It trades about -0.02 of its total potential returns per unit of risk. HMS Bergbau AG is currently generating about 0.18 per unit of volatility. If you would invest 2,044 in HMS Bergbau AG on September 4, 2024 and sell it today you would earn a total of 876.00 from holding HMS Bergbau AG or generate 42.86% 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. HMS Bergbau AG
Performance |
| Timeline |
| AEGEAN AIRLINES |
| HMS Bergbau AG |
AEGEAN AIRLINES and HMS Bergbau Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AEGEAN AIRLINES and HMS Bergbau
The main advantage of trading using opposite AEGEAN AIRLINES and HMS Bergbau positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AEGEAN AIRLINES position performs unexpectedly, HMS Bergbau 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 HMS Bergbau will offset losses from the drop in HMS Bergbau's long position.| AEGEAN AIRLINES vs. TOTAL GABON | AEGEAN AIRLINES vs. Walgreens Boots Alliance | AEGEAN AIRLINES vs. Peak Resources Limited |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |