Correlation Between Aegean Airlines and Automatic Data
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and Automatic Data 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 Automatic Data 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 Automatic Data Processing, you can compare the effects of market volatilities on Aegean Airlines and Automatic Data 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 Automatic Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and Automatic Data.
Diversification Opportunities for Aegean Airlines and Automatic Data
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aegean and Automatic is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and Automatic Data Processing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Automatic Data Processing 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 Automatic Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Automatic Data Processing has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and Automatic Data go up and down completely randomly.
Pair Corralation between Aegean Airlines and Automatic Data
Assuming the 90 days horizon Aegean Airlines SA is expected to generate 1.88 times more return on investment than Automatic Data. However, Aegean Airlines is 1.88 times more volatile than Automatic Data Processing. It trades about 0.05 of its potential returns per unit of risk. Automatic Data Processing is currently generating about 0.06 per unit of risk. If you would invest 644.00 in Aegean Airlines SA on October 30, 2024 and sell it today you would earn a total of 415.00 from holding Aegean Airlines SA or generate 64.44% 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. Automatic Data Processing
Performance |
| Timeline |
| Aegean Airlines SA |
| Automatic Data Processing |
Aegean Airlines and Automatic Data Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and Automatic Data
The main advantage of trading using opposite Aegean Airlines and Automatic Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, Automatic Data 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 Automatic Data will offset losses from the drop in Automatic Data's long position.| Aegean Airlines vs. BJs Restaurants | Aegean Airlines vs. CEOTRONICS | Aegean Airlines vs. alstria office REIT AG | Aegean Airlines vs. Perdoceo Education |
| Automatic Data vs. Tower One Wireless | Automatic Data vs. Altair Engineering | Automatic Data vs. FORWARD AIR P | Automatic Data vs. Corporate Office Properties |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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