Correlation Between Aegean Airlines and AUSNUTRIA DAIRY
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and AUSNUTRIA DAIRY 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 AUSNUTRIA DAIRY 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 AUSNUTRIA DAIRY, you can compare the effects of market volatilities on Aegean Airlines and AUSNUTRIA DAIRY 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 AUSNUTRIA DAIRY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and AUSNUTRIA DAIRY.
Diversification Opportunities for Aegean Airlines and AUSNUTRIA DAIRY
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aegean and AUSNUTRIA is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and AUSNUTRIA DAIRY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AUSNUTRIA DAIRY 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 AUSNUTRIA DAIRY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AUSNUTRIA DAIRY has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and AUSNUTRIA DAIRY go up and down completely randomly.
Pair Corralation between Aegean Airlines and AUSNUTRIA DAIRY
Assuming the 90 days horizon Aegean Airlines SA is expected to under-perform the AUSNUTRIA DAIRY. But the stock apears to be less risky and, when comparing its historical volatility, Aegean Airlines SA is 1.97 times less risky than AUSNUTRIA DAIRY. The stock trades about -0.02 of its potential returns per unit of risk. The AUSNUTRIA DAIRY is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 23.00 in AUSNUTRIA DAIRY on October 18, 2024 and sell it today you would earn a total of 0.00 from holding AUSNUTRIA DAIRY or generate 0.0% 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. AUSNUTRIA DAIRY
Performance |
| Timeline |
| Aegean Airlines SA |
| AUSNUTRIA DAIRY |
Aegean Airlines and AUSNUTRIA DAIRY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and AUSNUTRIA DAIRY
The main advantage of trading using opposite Aegean Airlines and AUSNUTRIA DAIRY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, AUSNUTRIA DAIRY 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 AUSNUTRIA DAIRY will offset losses from the drop in AUSNUTRIA DAIRY's long position.| Aegean Airlines vs. Calibre Mining Corp | Aegean Airlines vs. FIREWEED METALS P | Aegean Airlines vs. De Grey Mining | Aegean Airlines vs. ADRIATIC METALS LS 013355 |
| AUSNUTRIA DAIRY vs. China Eastern Airlines | AUSNUTRIA DAIRY vs. Ryanair Holdings plc | AUSNUTRIA DAIRY vs. SBM OFFSHORE | AUSNUTRIA DAIRY vs. Aegean Airlines SA |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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