Correlation Between AEGEAN AIRLINES and TRAVEL +
Can any of the company-specific risk be diversified away by investing in both AEGEAN AIRLINES and TRAVEL + 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 TRAVEL + into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AEGEAN AIRLINES and TRAVEL LEISURE DL 01, you can compare the effects of market volatilities on AEGEAN AIRLINES and TRAVEL + 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 TRAVEL +. Check out your portfolio center. Please also check ongoing floating volatility patterns of AEGEAN AIRLINES and TRAVEL +.
Diversification Opportunities for AEGEAN AIRLINES and TRAVEL +
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between AEGEAN and TRAVEL is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding AEGEAN AIRLINES and TRAVEL LEISURE DL 01 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRAVEL LEISURE DL 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 TRAVEL +. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRAVEL LEISURE DL has no effect on the direction of AEGEAN AIRLINES i.e., AEGEAN AIRLINES and TRAVEL + go up and down completely randomly.
Pair Corralation between AEGEAN AIRLINES and TRAVEL +
Assuming the 90 days trading horizon AEGEAN AIRLINES is expected to generate 1.13 times more return on investment than TRAVEL +. However, AEGEAN AIRLINES is 1.13 times more volatile than TRAVEL LEISURE DL 01. It trades about 0.19 of its potential returns per unit of risk. TRAVEL LEISURE DL 01 is currently generating about 0.19 per unit of risk. If you would invest 993.00 in AEGEAN AIRLINES on November 3, 2024 and sell it today you would earn a total of 74.00 from holding AEGEAN AIRLINES or generate 7.45% 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. TRAVEL LEISURE DL 01
Performance |
| Timeline |
| AEGEAN AIRLINES |
| TRAVEL LEISURE DL |
AEGEAN AIRLINES and TRAVEL + Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AEGEAN AIRLINES and TRAVEL +
The main advantage of trading using opposite AEGEAN AIRLINES and TRAVEL + positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AEGEAN AIRLINES position performs unexpectedly, TRAVEL + 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 TRAVEL + will offset losses from the drop in TRAVEL +'s long position.| AEGEAN AIRLINES vs. Highlight Communications AG | AEGEAN AIRLINES vs. Silicon Motion Technology | AEGEAN AIRLINES vs. Chunghwa Telecom Co | AEGEAN AIRLINES vs. Mitsubishi Gas Chemical |
| TRAVEL + vs. CITY OFFICE REIT | TRAVEL + vs. KOBE STEEL LTD | TRAVEL + vs. Pentair plc | TRAVEL + vs. Olympic Steel |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |