Correlation Between Aegean Airlines and INDO RAMA
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and INDO RAMA 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 INDO RAMA 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 INDO RAMA SYNTHETIC, you can compare the effects of market volatilities on Aegean Airlines and INDO RAMA 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 INDO RAMA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and INDO RAMA.
Diversification Opportunities for Aegean Airlines and INDO RAMA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aegean and INDO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and INDO RAMA SYNTHETIC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INDO RAMA SYNTHETIC 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 INDO RAMA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INDO RAMA SYNTHETIC has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and INDO RAMA go up and down completely randomly.
Pair Corralation between Aegean Airlines and INDO RAMA
If you would invest 1,005 in Aegean Airlines SA on October 11, 2024 and sell it today you would earn a total of 37.00 from holding Aegean Airlines SA or generate 3.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aegean Airlines SA vs. INDO RAMA SYNTHETIC
Performance |
| Timeline |
| Aegean Airlines SA |
| INDO RAMA SYNTHETIC |
Aegean Airlines and INDO RAMA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and INDO RAMA
The main advantage of trading using opposite Aegean Airlines and INDO RAMA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, INDO RAMA 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 INDO RAMA will offset losses from the drop in INDO RAMA's long position.| Aegean Airlines vs. Playtech plc | Aegean Airlines vs. G8 EDUCATION | Aegean Airlines vs. Laureate Education | Aegean Airlines vs. Playmates Toys Limited |
| INDO RAMA vs. Aegean Airlines SA | INDO RAMA vs. China Eastern Airlines | INDO RAMA vs. Firan Technology Group | INDO RAMA vs. De Grey Mining |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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