Correlation Between AEGEAN AIRLINES and Acadia Realty
Can any of the company-specific risk be diversified away by investing in both AEGEAN AIRLINES and Acadia Realty 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 Acadia Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AEGEAN AIRLINES and Acadia Realty Trust, you can compare the effects of market volatilities on AEGEAN AIRLINES and Acadia Realty 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 Acadia Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of AEGEAN AIRLINES and Acadia Realty.
Diversification Opportunities for AEGEAN AIRLINES and Acadia Realty
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AEGEAN and Acadia is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding AEGEAN AIRLINES and Acadia Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acadia Realty Trust 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 Acadia Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acadia Realty Trust has no effect on the direction of AEGEAN AIRLINES i.e., AEGEAN AIRLINES and Acadia Realty go up and down completely randomly.
Pair Corralation between AEGEAN AIRLINES and Acadia Realty
Assuming the 90 days trading horizon AEGEAN AIRLINES is expected to generate 0.7 times more return on investment than Acadia Realty. However, AEGEAN AIRLINES is 1.43 times less risky than Acadia Realty. It trades about 0.16 of its potential returns per unit of risk. Acadia Realty Trust is currently generating about -0.31 per unit of risk. If you would invest 991.00 in AEGEAN AIRLINES on October 13, 2024 and sell it today you would earn a total of 33.00 from holding AEGEAN AIRLINES or generate 3.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AEGEAN AIRLINES vs. Acadia Realty Trust
Performance |
| Timeline |
| AEGEAN AIRLINES |
| Acadia Realty Trust |
AEGEAN AIRLINES and Acadia Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AEGEAN AIRLINES and Acadia Realty
The main advantage of trading using opposite AEGEAN AIRLINES and Acadia Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AEGEAN AIRLINES position performs unexpectedly, Acadia Realty 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 Acadia Realty will offset losses from the drop in Acadia Realty's long position.| AEGEAN AIRLINES vs. AECOM TECHNOLOGY | AEGEAN AIRLINES vs. X FAB Silicon Foundries | AEGEAN AIRLINES vs. X FAB Silicon Foundries | AEGEAN AIRLINES vs. SMA Solar Technology |
| Acadia Realty vs. China Eastern Airlines | Acadia Realty vs. AEGEAN AIRLINES | Acadia Realty vs. Mount Gibson Iron | Acadia Realty vs. Gol Intelligent 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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