Correlation Between Aegean Airlines and BRIT AMER
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and BRIT AMER 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 BRIT AMER 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 BRIT AMER TOBACCO, you can compare the effects of market volatilities on Aegean Airlines and BRIT AMER 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 BRIT AMER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and BRIT AMER.
Diversification Opportunities for Aegean Airlines and BRIT AMER
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aegean and BRIT is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and BRIT AMER TOBACCO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BRIT AMER TOBACCO 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 BRIT AMER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BRIT AMER TOBACCO has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and BRIT AMER go up and down completely randomly.
Pair Corralation between Aegean Airlines and BRIT AMER
Assuming the 90 days horizon Aegean Airlines is expected to generate 2.22 times less return on investment than BRIT AMER. In addition to that, Aegean Airlines is 2.01 times more volatile than BRIT AMER TOBACCO. It trades about 0.02 of its total potential returns per unit of risk. BRIT AMER TOBACCO is currently generating about 0.07 per unit of volatility. If you would invest 2,707 in BRIT AMER TOBACCO on August 31, 2024 and sell it today you would earn a total of 884.00 from holding BRIT AMER TOBACCO or generate 32.66% 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. BRIT AMER TOBACCO
Performance |
| Timeline |
| Aegean Airlines SA |
| BRIT AMER TOBACCO |
Aegean Airlines and BRIT AMER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and BRIT AMER
The main advantage of trading using opposite Aegean Airlines and BRIT AMER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, BRIT AMER 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 BRIT AMER will offset losses from the drop in BRIT AMER'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 |
| BRIT AMER vs. SIVERS SEMICONDUCTORS AB | BRIT AMER vs. Darden Restaurants | BRIT AMER vs. Reliance Steel Aluminum | BRIT AMER 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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