Correlation Between Aegean Airlines and AM EAGLE
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and AM EAGLE 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 AM EAGLE 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 AM EAGLE OUTFITTERS, you can compare the effects of market volatilities on Aegean Airlines and AM EAGLE 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 AM EAGLE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and AM EAGLE.
Diversification Opportunities for Aegean Airlines and AM EAGLE
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Aegean and AFG is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and AM EAGLE OUTFITTERS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AM EAGLE OUTFITTERS 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 AM EAGLE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AM EAGLE OUTFITTERS has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and AM EAGLE go up and down completely randomly.
Pair Corralation between Aegean Airlines and AM EAGLE
Assuming the 90 days horizon Aegean Airlines SA is expected to under-perform the AM EAGLE. But the stock apears to be less risky and, when comparing its historical volatility, Aegean Airlines SA is 1.29 times less risky than AM EAGLE. The stock trades about -0.02 of its potential returns per unit of risk. The AM EAGLE OUTFITTERS is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,788 in AM EAGLE OUTFITTERS on September 2, 2024 and sell it today you would earn a total of 22.00 from holding AM EAGLE OUTFITTERS or generate 1.23% 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. AM EAGLE OUTFITTERS
Performance |
| Timeline |
| Aegean Airlines SA |
| AM EAGLE OUTFITTERS |
Aegean Airlines and AM EAGLE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and AM EAGLE
The main advantage of trading using opposite Aegean Airlines and AM EAGLE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, AM EAGLE 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 AM EAGLE will offset losses from the drop in AM EAGLE's long position.| Aegean Airlines vs. Superior Plus Corp | Aegean Airlines vs. NMI Holdings | Aegean Airlines vs. Origin Agritech | Aegean Airlines vs. SIVERS SEMICONDUCTORS AB |
| AM EAGLE vs. SIVERS SEMICONDUCTORS AB | AM EAGLE vs. Darden Restaurants | AM EAGLE vs. Reliance Steel Aluminum | AM EAGLE vs. Q2M Managementberatung AG |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |