Correlation Between AEGEAN AIRLINES and T-Mobile
Can any of the company-specific risk be diversified away by investing in both AEGEAN AIRLINES and T-Mobile 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 T-Mobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AEGEAN AIRLINES and T Mobile, you can compare the effects of market volatilities on AEGEAN AIRLINES and T-Mobile 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 T-Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of AEGEAN AIRLINES and T-Mobile.
Diversification Opportunities for AEGEAN AIRLINES and T-Mobile
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AEGEAN and T-Mobile is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding AEGEAN AIRLINES and T Mobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on T Mobile 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 T-Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of T Mobile has no effect on the direction of AEGEAN AIRLINES i.e., AEGEAN AIRLINES and T-Mobile go up and down completely randomly.
Pair Corralation between AEGEAN AIRLINES and T-Mobile
Assuming the 90 days trading horizon AEGEAN AIRLINES is expected to generate 0.61 times more return on investment than T-Mobile. However, AEGEAN AIRLINES is 1.65 times less risky than T-Mobile. It trades about 0.19 of its potential returns per unit of risk. T Mobile is currently generating about -0.21 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 | Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
AEGEAN AIRLINES vs. T Mobile
Performance |
| Timeline |
| AEGEAN AIRLINES |
| T Mobile |
AEGEAN AIRLINES and T-Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AEGEAN AIRLINES and T-Mobile
The main advantage of trading using opposite AEGEAN AIRLINES and T-Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AEGEAN AIRLINES position performs unexpectedly, T-Mobile 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 T-Mobile will offset losses from the drop in T-Mobile's long position.| AEGEAN AIRLINES vs. CLOVER HEALTH INV | AEGEAN AIRLINES vs. MPH Health Care | AEGEAN AIRLINES vs. YOOMA WELLNESS INC | AEGEAN AIRLINES vs. DFS Furniture PLC |
| T-Mobile vs. AEGEAN AIRLINES | T-Mobile vs. CHINA TONTINE WINES | T-Mobile vs. Singapore Airlines Limited | T-Mobile vs. China Eastern Airlines |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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