Correlation Between Aegean Airlines and MSCI
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and MSCI 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 MSCI 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 MSCI Inc, you can compare the effects of market volatilities on Aegean Airlines and MSCI 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 MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and MSCI.
Diversification Opportunities for Aegean Airlines and MSCI
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aegean and MSCI is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and MSCI Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MSCI Inc 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 MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MSCI Inc has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and MSCI go up and down completely randomly.
Pair Corralation between Aegean Airlines and MSCI
Assuming the 90 days horizon Aegean Airlines is expected to generate 5.32 times less return on investment than MSCI. But when comparing it to its historical volatility, Aegean Airlines SA is 1.07 times less risky than MSCI. It trades about 0.02 of its potential returns per unit of risk. MSCI Inc is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 55,306 in MSCI Inc on September 13, 2024 and sell it today you would earn a total of 4,794 from holding MSCI Inc or generate 8.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.73% |
| Values | Daily Returns |
Aegean Airlines SA vs. MSCI Inc
Performance |
| Timeline |
| Aegean Airlines SA |
| MSCI Inc |
Aegean Airlines and MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and MSCI
The main advantage of trading using opposite Aegean Airlines and MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, MSCI 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 MSCI will offset losses from the drop in MSCI's long position.| Aegean Airlines vs. RYANAIR HLDGS ADR | Aegean Airlines vs. Ryanair Holdings plc | Aegean Airlines vs. Superior Plus Corp | Aegean Airlines vs. SIVERS SEMICONDUCTORS AB |
| MSCI vs. JD SPORTS FASH | MSCI vs. MIRAMAR HOTEL INV | MSCI vs. Sunstone Hotel Investors | MSCI vs. PLAYTIKA HOLDING DL 01 |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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