Correlation Between Aegean Airlines and PLAYMATES TOYS
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and PLAYMATES TOYS 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 PLAYMATES TOYS 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 PLAYMATES TOYS, you can compare the effects of market volatilities on Aegean Airlines and PLAYMATES TOYS 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 PLAYMATES TOYS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and PLAYMATES TOYS.
Diversification Opportunities for Aegean Airlines and PLAYMATES TOYS
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aegean and PLAYMATES is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and PLAYMATES TOYS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PLAYMATES TOYS 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 PLAYMATES TOYS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PLAYMATES TOYS has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and PLAYMATES TOYS go up and down completely randomly.
Pair Corralation between Aegean Airlines and PLAYMATES TOYS
Assuming the 90 days horizon Aegean Airlines SA is expected to generate 0.69 times more return on investment than PLAYMATES TOYS. However, Aegean Airlines SA is 1.44 times less risky than PLAYMATES TOYS. It trades about 0.08 of its potential returns per unit of risk. PLAYMATES TOYS is currently generating about -0.06 per unit of risk. If you would invest 962.00 in Aegean Airlines SA on September 14, 2024 and sell it today you would earn a total of 29.00 from holding Aegean Airlines SA or generate 3.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aegean Airlines SA vs. PLAYMATES TOYS
Performance |
| Timeline |
| Aegean Airlines SA |
| PLAYMATES TOYS |
Aegean Airlines and PLAYMATES TOYS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and PLAYMATES TOYS
The main advantage of trading using opposite Aegean Airlines and PLAYMATES TOYS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, PLAYMATES TOYS 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 PLAYMATES TOYS will offset losses from the drop in PLAYMATES TOYS'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 |
| PLAYMATES TOYS vs. GALENA MINING LTD | PLAYMATES TOYS vs. LION ONE METALS | PLAYMATES TOYS vs. ASSOC BR FOODS | PLAYMATES TOYS vs. TYSON FOODS A |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |