Correlation Between Aegean Airlines and Gaztransport Technigaz
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and Gaztransport Technigaz 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 Gaztransport Technigaz 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 Gaztransport Technigaz SA, you can compare the effects of market volatilities on Aegean Airlines and Gaztransport Technigaz 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 Gaztransport Technigaz. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and Gaztransport Technigaz.
Diversification Opportunities for Aegean Airlines and Gaztransport Technigaz
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aegean and Gaztransport is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and Gaztransport Technigaz SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaztransport Technigaz 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 Gaztransport Technigaz. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gaztransport Technigaz has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and Gaztransport Technigaz go up and down completely randomly.
Pair Corralation between Aegean Airlines and Gaztransport Technigaz
Assuming the 90 days horizon Aegean Airlines SA is expected to generate 0.92 times more return on investment than Gaztransport Technigaz. However, Aegean Airlines SA is 1.09 times less risky than Gaztransport Technigaz. It trades about 0.21 of its potential returns per unit of risk. Gaztransport Technigaz SA is currently generating about -0.2 per unit of risk. If you would invest 940.00 in Aegean Airlines SA on September 24, 2024 and sell it today you would earn a total of 66.00 from holding Aegean Airlines SA or generate 7.02% 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. Gaztransport Technigaz SA
Performance |
| Timeline |
| Aegean Airlines SA |
| Gaztransport Technigaz |
Aegean Airlines and Gaztransport Technigaz Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and Gaztransport Technigaz
The main advantage of trading using opposite Aegean Airlines and Gaztransport Technigaz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, Gaztransport Technigaz 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 Gaztransport Technigaz will offset losses from the drop in Gaztransport Technigaz's long position.| Aegean Airlines vs. Delta Air Lines | Aegean Airlines vs. Air China Limited | Aegean Airlines vs. AIR CHINA LTD | Aegean Airlines vs. RYANAIR HLDGS ADR |
| Gaztransport Technigaz vs. Schlumberger Limited | Gaztransport Technigaz vs. Halliburton | Gaztransport Technigaz vs. Halliburton | Gaztransport Technigaz vs. Baker Hughes Co |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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