Correlation Between AEGEAN AIRLINES and Transportadora
Can any of the company-specific risk be diversified away by investing in both AEGEAN AIRLINES and Transportadora 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 Transportadora into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AEGEAN AIRLINES and Transportadora de Gas, you can compare the effects of market volatilities on AEGEAN AIRLINES and Transportadora 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 Transportadora. Check out your portfolio center. Please also check ongoing floating volatility patterns of AEGEAN AIRLINES and Transportadora.
Diversification Opportunities for AEGEAN AIRLINES and Transportadora
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AEGEAN and Transportadora is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding AEGEAN AIRLINES and Transportadora de Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transportadora de Gas 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 Transportadora. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transportadora de Gas has no effect on the direction of AEGEAN AIRLINES i.e., AEGEAN AIRLINES and Transportadora go up and down completely randomly.
Pair Corralation between AEGEAN AIRLINES and Transportadora
Assuming the 90 days trading horizon AEGEAN AIRLINES is expected to under-perform the Transportadora. But the stock apears to be less risky and, when comparing its historical volatility, AEGEAN AIRLINES is 3.04 times less risky than Transportadora. The stock trades about -0.13 of its potential returns per unit of risk. The Transportadora de Gas is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 2,020 in Transportadora de Gas on August 31, 2024 and sell it today you would earn a total of 700.00 from holding Transportadora de Gas or generate 34.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AEGEAN AIRLINES vs. Transportadora de Gas
Performance |
| Timeline |
| AEGEAN AIRLINES |
| Transportadora de Gas |
AEGEAN AIRLINES and Transportadora Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AEGEAN AIRLINES and Transportadora
The main advantage of trading using opposite AEGEAN AIRLINES and Transportadora positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AEGEAN AIRLINES position performs unexpectedly, Transportadora 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 Transportadora will offset losses from the drop in Transportadora's long position.| AEGEAN AIRLINES vs. SIVERS SEMICONDUCTORS AB | AEGEAN AIRLINES vs. Darden Restaurants | AEGEAN AIRLINES vs. Reliance Steel Aluminum | AEGEAN AIRLINES vs. Q2M Managementberatung AG |
| Transportadora vs. Gladstone Investment | Transportadora vs. Games Workshop Group | Transportadora vs. MGIC INVESTMENT | Transportadora vs. HK Electric Investments |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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