Correlation Between AEGEAN AIRLINES and Calibre Mining
Can any of the company-specific risk be diversified away by investing in both AEGEAN AIRLINES and Calibre Mining 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 Calibre Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AEGEAN AIRLINES and Calibre Mining Corp, you can compare the effects of market volatilities on AEGEAN AIRLINES and Calibre Mining 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 Calibre Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of AEGEAN AIRLINES and Calibre Mining.
Diversification Opportunities for AEGEAN AIRLINES and Calibre Mining
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AEGEAN and Calibre is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding AEGEAN AIRLINES and Calibre Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calibre Mining Corp 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 Calibre Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calibre Mining Corp has no effect on the direction of AEGEAN AIRLINES i.e., AEGEAN AIRLINES and Calibre Mining go up and down completely randomly.
Pair Corralation between AEGEAN AIRLINES and Calibre Mining
Assuming the 90 days trading horizon AEGEAN AIRLINES is expected to generate 0.38 times more return on investment than Calibre Mining. However, AEGEAN AIRLINES is 2.63 times less risky than Calibre Mining. It trades about 0.17 of its potential returns per unit of risk. Calibre Mining Corp is currently generating about -0.03 per unit of risk. If you would invest 1,005 in AEGEAN AIRLINES on October 11, 2024 and sell it today you would earn a total of 37.00 from holding AEGEAN AIRLINES or generate 3.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AEGEAN AIRLINES vs. Calibre Mining Corp
Performance |
| Timeline |
| AEGEAN AIRLINES |
| Calibre Mining Corp |
AEGEAN AIRLINES and Calibre Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AEGEAN AIRLINES and Calibre Mining
The main advantage of trading using opposite AEGEAN AIRLINES and Calibre Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AEGEAN AIRLINES position performs unexpectedly, Calibre Mining 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 Calibre Mining will offset losses from the drop in Calibre Mining's long position.| AEGEAN AIRLINES vs. TERADATA | AEGEAN AIRLINES vs. Automatic Data Processing | AEGEAN AIRLINES vs. Q2M Managementberatung AG | AEGEAN AIRLINES vs. MICRONIC MYDATA |
| Calibre Mining vs. PennantPark Investment | Calibre Mining vs. CVW CLEANTECH INC | Calibre Mining vs. SLR Investment Corp | Calibre Mining vs. Ultra Clean Holdings |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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