Correlation Between Aegean Airlines and SCIENCE IN
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and SCIENCE IN 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 SCIENCE IN 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 SCIENCE IN SPORT, you can compare the effects of market volatilities on Aegean Airlines and SCIENCE IN 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 SCIENCE IN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and SCIENCE IN.
Diversification Opportunities for Aegean Airlines and SCIENCE IN
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aegean and SCIENCE is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and SCIENCE IN SPORT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCIENCE IN SPORT 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 SCIENCE IN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCIENCE IN SPORT has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and SCIENCE IN go up and down completely randomly.
Pair Corralation between Aegean Airlines and SCIENCE IN
Assuming the 90 days horizon Aegean Airlines is expected to generate 1.78 times less return on investment than SCIENCE IN. But when comparing it to its historical volatility, Aegean Airlines SA is 2.2 times less risky than SCIENCE IN. It trades about 0.07 of its potential returns per unit of risk. SCIENCE IN SPORT is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 14.00 in SCIENCE IN SPORT on September 3, 2024 and sell it today you would earn a total of 16.00 from holding SCIENCE IN SPORT or generate 114.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aegean Airlines SA vs. SCIENCE IN SPORT
Performance |
| Timeline |
| Aegean Airlines SA |
| SCIENCE IN SPORT |
Aegean Airlines and SCIENCE IN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and SCIENCE IN
The main advantage of trading using opposite Aegean Airlines and SCIENCE IN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, SCIENCE IN 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 SCIENCE IN will offset losses from the drop in SCIENCE IN's long position.| Aegean Airlines vs. ETFS Coffee ETC | Aegean Airlines vs. Darden Restaurants | Aegean Airlines vs. Waste Management | Aegean Airlines vs. BJs Restaurants |
| SCIENCE IN vs. Nestl SA | SCIENCE IN vs. Kraft Heinz Co | SCIENCE IN vs. General Mills | SCIENCE IN vs. Kellogg Company |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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