Correlation Between AEGEAN AIRLINES and Gruppo Mutuionline
Can any of the company-specific risk be diversified away by investing in both AEGEAN AIRLINES and Gruppo Mutuionline 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 Gruppo Mutuionline into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AEGEAN AIRLINES and Gruppo Mutuionline SpA, you can compare the effects of market volatilities on AEGEAN AIRLINES and Gruppo Mutuionline 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 Gruppo Mutuionline. Check out your portfolio center. Please also check ongoing floating volatility patterns of AEGEAN AIRLINES and Gruppo Mutuionline.
Diversification Opportunities for AEGEAN AIRLINES and Gruppo Mutuionline
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AEGEAN and Gruppo is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding AEGEAN AIRLINES and Gruppo Mutuionline SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gruppo Mutuionline SpA 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 Gruppo Mutuionline. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gruppo Mutuionline SpA has no effect on the direction of AEGEAN AIRLINES i.e., AEGEAN AIRLINES and Gruppo Mutuionline go up and down completely randomly.
Pair Corralation between AEGEAN AIRLINES and Gruppo Mutuionline
Assuming the 90 days trading horizon AEGEAN AIRLINES is expected to generate 0.63 times more return on investment than Gruppo Mutuionline. However, AEGEAN AIRLINES is 1.59 times less risky than Gruppo Mutuionline. It trades about 0.2 of its potential returns per unit of risk. Gruppo Mutuionline SpA is currently generating about -0.23 per unit of risk. If you would invest 991.00 in AEGEAN AIRLINES on October 12, 2024 and sell it today you would earn a total of 40.00 from holding AEGEAN AIRLINES or generate 4.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AEGEAN AIRLINES vs. Gruppo Mutuionline SpA
Performance |
| Timeline |
| AEGEAN AIRLINES |
| Gruppo Mutuionline SpA |
AEGEAN AIRLINES and Gruppo Mutuionline Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AEGEAN AIRLINES and Gruppo Mutuionline
The main advantage of trading using opposite AEGEAN AIRLINES and Gruppo Mutuionline positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AEGEAN AIRLINES position performs unexpectedly, Gruppo Mutuionline 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 Gruppo Mutuionline will offset losses from the drop in Gruppo Mutuionline's long position.| AEGEAN AIRLINES vs. TERADATA | AEGEAN AIRLINES vs. Automatic Data Processing | AEGEAN AIRLINES vs. Q2M Managementberatung AG | AEGEAN AIRLINES vs. MICRONIC MYDATA |
| Gruppo Mutuionline vs. OFFICE DEPOT | Gruppo Mutuionline vs. AEGEAN AIRLINES | Gruppo Mutuionline vs. Aegean Airlines SA | Gruppo Mutuionline vs. Beazer Homes USA |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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