Correlation Between Aegean Airlines and ALBIS LEASING
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and ALBIS LEASING 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 ALBIS LEASING 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 ALBIS LEASING AG, you can compare the effects of market volatilities on Aegean Airlines and ALBIS LEASING 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 ALBIS LEASING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and ALBIS LEASING.
Diversification Opportunities for Aegean Airlines and ALBIS LEASING
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aegean and ALBIS is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and ALBIS LEASING AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALBIS LEASING AG 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 ALBIS LEASING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALBIS LEASING AG has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and ALBIS LEASING go up and down completely randomly.
Pair Corralation between Aegean Airlines and ALBIS LEASING
Assuming the 90 days horizon Aegean Airlines is expected to generate 2.32 times less return on investment than ALBIS LEASING. In addition to that, Aegean Airlines is 2.52 times more volatile than ALBIS LEASING AG. It trades about 0.02 of its total potential returns per unit of risk. ALBIS LEASING AG is currently generating about 0.09 per unit of volatility. If you would invest 205.00 in ALBIS LEASING AG on August 31, 2024 and sell it today you would earn a total of 73.00 from holding ALBIS LEASING AG or generate 35.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.74% |
| Values | Daily Returns |
Aegean Airlines SA vs. ALBIS LEASING AG
Performance |
| Timeline |
| Aegean Airlines SA |
| ALBIS LEASING AG |
Aegean Airlines and ALBIS LEASING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and ALBIS LEASING
The main advantage of trading using opposite Aegean Airlines and ALBIS LEASING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, ALBIS LEASING 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 ALBIS LEASING will offset losses from the drop in ALBIS LEASING's long position.| Aegean Airlines vs. Southwest Airlines Co | Aegean Airlines vs. Superior Plus Corp | Aegean Airlines vs. NMI Holdings | Aegean Airlines vs. Origin Agritech |
| ALBIS LEASING vs. EAGLE MATERIALS | ALBIS LEASING vs. URBAN OUTFITTERS | ALBIS LEASING vs. Transportadora de Gas | ALBIS LEASING vs. Eagle Materials |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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