Correlation Between Aegean Airlines and Suntory Beverage
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and Suntory Beverage 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 Suntory Beverage 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 Suntory Beverage Food, you can compare the effects of market volatilities on Aegean Airlines and Suntory Beverage 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 Suntory Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and Suntory Beverage.
Diversification Opportunities for Aegean Airlines and Suntory Beverage
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Aegean and Suntory is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and Suntory Beverage Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suntory Beverage Food 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 Suntory Beverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suntory Beverage Food has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and Suntory Beverage go up and down completely randomly.
Pair Corralation between Aegean Airlines and Suntory Beverage
Assuming the 90 days horizon Aegean Airlines SA is expected to generate 0.58 times more return on investment than Suntory Beverage. However, Aegean Airlines SA is 1.71 times less risky than Suntory Beverage. It trades about 0.3 of its potential returns per unit of risk. Suntory Beverage Food is currently generating about -0.15 per unit of risk. If you would invest 991.00 in Aegean Airlines SA on October 12, 2024 and sell it today you would earn a total of 51.00 from holding Aegean Airlines SA or generate 5.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aegean Airlines SA vs. Suntory Beverage Food
Performance |
| Timeline |
| Aegean Airlines SA |
| Suntory Beverage Food |
Aegean Airlines and Suntory Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and Suntory Beverage
The main advantage of trading using opposite Aegean Airlines and Suntory Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, Suntory Beverage 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 Suntory Beverage will offset losses from the drop in Suntory Beverage's long position.| Aegean Airlines vs. Bio Techne Corp | Aegean Airlines vs. T MOBILE US | Aegean Airlines vs. Entravision Communications | Aegean Airlines vs. SOCKET MOBILE NEW |
| Suntory Beverage vs. ALTAIR RES INC | Suntory Beverage vs. Iridium Communications | Suntory Beverage vs. SOGECLAIR SA INH | Suntory Beverage vs. Ribbon Communications |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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