Correlation Between Aegean Airlines and Superior Plus
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and Superior Plus 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 Superior Plus 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 Superior Plus Corp, you can compare the effects of market volatilities on Aegean Airlines and Superior Plus 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 Superior Plus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and Superior Plus.
Diversification Opportunities for Aegean Airlines and Superior Plus
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aegean and Superior is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and Superior Plus Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Superior Plus Corp 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 Superior Plus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Superior Plus Corp has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and Superior Plus go up and down completely randomly.
Pair Corralation between Aegean Airlines and Superior Plus
Assuming the 90 days horizon Aegean Airlines SA is expected to generate 0.83 times more return on investment than Superior Plus. However, Aegean Airlines SA is 1.21 times less risky than Superior Plus. It trades about -0.02 of its potential returns per unit of risk. Superior Plus Corp is currently generating about -0.04 per unit of risk. If you would invest 1,081 in Aegean Airlines SA on September 2, 2024 and sell it today you would lose (131.00) from holding Aegean Airlines SA or give up 12.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aegean Airlines SA vs. Superior Plus Corp
Performance |
| Timeline |
| Aegean Airlines SA |
| Superior Plus Corp |
Aegean Airlines and Superior Plus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and Superior Plus
The main advantage of trading using opposite Aegean Airlines and Superior Plus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, Superior Plus 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 Superior Plus will offset losses from the drop in Superior Plus' long position.| Aegean Airlines vs. Superior Plus Corp | Aegean Airlines vs. NMI Holdings | Aegean Airlines vs. Origin Agritech | Aegean Airlines vs. SIVERS SEMICONDUCTORS AB |
| Superior Plus vs. TEXAS ROADHOUSE | Superior Plus vs. Broadcom | Superior Plus vs. Fukuyama Transporting Co | Superior Plus vs. Wayside Technology Group |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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