Correlation Between Aegean Airlines and AXWAY SOFTWARE
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and AXWAY SOFTWARE 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 AXWAY SOFTWARE 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 AXWAY SOFTWARE EO, you can compare the effects of market volatilities on Aegean Airlines and AXWAY SOFTWARE 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 AXWAY SOFTWARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and AXWAY SOFTWARE.
Diversification Opportunities for Aegean Airlines and AXWAY SOFTWARE
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aegean and AXWAY is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and AXWAY SOFTWARE EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AXWAY SOFTWARE EO 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 AXWAY SOFTWARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AXWAY SOFTWARE EO has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and AXWAY SOFTWARE go up and down completely randomly.
Pair Corralation between Aegean Airlines and AXWAY SOFTWARE
Assuming the 90 days horizon Aegean Airlines SA is expected to generate 1.54 times more return on investment than AXWAY SOFTWARE. However, Aegean Airlines is 1.54 times more volatile than AXWAY SOFTWARE EO. It trades about 0.16 of its potential returns per unit of risk. AXWAY SOFTWARE EO is currently generating about 0.08 per unit of risk. If you would invest 991.00 in Aegean Airlines SA on October 29, 2024 and sell it today you would earn a total of 63.00 from holding Aegean Airlines SA or generate 6.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aegean Airlines SA vs. AXWAY SOFTWARE EO
Performance |
| Timeline |
| Aegean Airlines SA |
| AXWAY SOFTWARE EO |
Aegean Airlines and AXWAY SOFTWARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and AXWAY SOFTWARE
The main advantage of trading using opposite Aegean Airlines and AXWAY SOFTWARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, AXWAY SOFTWARE 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 AXWAY SOFTWARE will offset losses from the drop in AXWAY SOFTWARE's long position.| Aegean Airlines vs. Coeur Mining | Aegean Airlines vs. Tyson Foods | Aegean Airlines vs. Western Copper and | Aegean Airlines vs. GRIFFIN MINING LTD |
| AXWAY SOFTWARE vs. BANKINTER ADR 2007 | AXWAY SOFTWARE vs. S E BANKEN A | AXWAY SOFTWARE vs. CHIBA BANK | AXWAY SOFTWARE vs. GRUPO CARSO A1 |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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