Correlation Between AEGEAN AIRLINES and Pick N
Can any of the company-specific risk be diversified away by investing in both AEGEAN AIRLINES and Pick N 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 Pick N into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AEGEAN AIRLINES and Pick n Pay, you can compare the effects of market volatilities on AEGEAN AIRLINES and Pick N 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 Pick N. Check out your portfolio center. Please also check ongoing floating volatility patterns of AEGEAN AIRLINES and Pick N.
Diversification Opportunities for AEGEAN AIRLINES and Pick N
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between AEGEAN and Pick is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding AEGEAN AIRLINES and Pick n Pay in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pick n Pay 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 Pick N. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pick n Pay has no effect on the direction of AEGEAN AIRLINES i.e., AEGEAN AIRLINES and Pick N go up and down completely randomly.
Pair Corralation between AEGEAN AIRLINES and Pick N
Assuming the 90 days trading horizon AEGEAN AIRLINES is expected to generate 0.61 times more return on investment than Pick N. However, AEGEAN AIRLINES is 1.63 times less risky than Pick N. It trades about 0.25 of its potential returns per unit of risk. Pick n Pay is currently generating about 0.0 per unit of risk. If you would invest 982.00 in AEGEAN AIRLINES on October 25, 2024 and sell it today you would earn a total of 67.00 from holding AEGEAN AIRLINES or generate 6.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AEGEAN AIRLINES vs. Pick n Pay
Performance |
| Timeline |
| AEGEAN AIRLINES |
| Pick n Pay |
AEGEAN AIRLINES and Pick N Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AEGEAN AIRLINES and Pick N
The main advantage of trading using opposite AEGEAN AIRLINES and Pick N positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AEGEAN AIRLINES position performs unexpectedly, Pick N 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 Pick N will offset losses from the drop in Pick N's long position.| AEGEAN AIRLINES vs. Apple Inc | AEGEAN AIRLINES vs. Apple Inc | AEGEAN AIRLINES vs. Apple Inc | AEGEAN AIRLINES vs. Apple Inc |
| Pick N vs. CENTURIA OFFICE REIT | Pick N vs. AEGEAN AIRLINES | Pick N vs. SBM OFFSHORE | Pick N vs. alstria office REIT AG |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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