Correlation Between Aegean Airlines and HYATT HOTELS
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and HYATT HOTELS 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 HYATT HOTELS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aegean Airlines SA and HYATT HOTELS A, you can compare the effects of market volatilities on Aegean Airlines and HYATT HOTELS 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 HYATT HOTELS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and HYATT HOTELS.
Diversification Opportunities for Aegean Airlines and HYATT HOTELS
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aegean and HYATT is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and HYATT HOTELS A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HYATT HOTELS A 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 SA are associated (or correlated) with HYATT HOTELS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HYATT HOTELS A has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and HYATT HOTELS go up and down completely randomly.
Pair Corralation between Aegean Airlines and HYATT HOTELS
Assuming the 90 days horizon Aegean Airlines SA is expected to under-perform the HYATT HOTELS. But the stock apears to be less risky and, when comparing its historical volatility, Aegean Airlines SA is 1.12 times less risky than HYATT HOTELS. The stock trades about -0.08 of its potential returns per unit of risk. The HYATT HOTELS A is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 13,406 in HYATT HOTELS A on September 2, 2024 and sell it today you would earn a total of 1,429 from holding HYATT HOTELS A or generate 10.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aegean Airlines SA vs. HYATT HOTELS A
Performance |
| Timeline |
| Aegean Airlines SA |
| HYATT HOTELS A |
Aegean Airlines and HYATT HOTELS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and HYATT HOTELS
The main advantage of trading using opposite Aegean Airlines and HYATT HOTELS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, HYATT HOTELS 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 HYATT HOTELS will offset losses from the drop in HYATT HOTELS's long position.| Aegean Airlines vs. Superior Plus Corp | Aegean Airlines vs. NMI Holdings | Aegean Airlines vs. Origin Agritech | Aegean Airlines vs. SIVERS SEMICONDUCTORS AB |
| HYATT HOTELS vs. Cal Maine Foods | HYATT HOTELS vs. Performance Food Group | HYATT HOTELS vs. Aegean Airlines SA | HYATT HOTELS vs. JAPAN 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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