Correlation Between Aegean Airlines and Byggmax Group
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and Byggmax Group 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 Byggmax Group 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 Byggmax Group AB, you can compare the effects of market volatilities on Aegean Airlines and Byggmax Group 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 Byggmax Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and Byggmax Group.
Diversification Opportunities for Aegean Airlines and Byggmax Group
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aegean and Byggmax is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and Byggmax Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Byggmax Group AB 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 Byggmax Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Byggmax Group AB has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and Byggmax Group go up and down completely randomly.
Pair Corralation between Aegean Airlines and Byggmax Group
Assuming the 90 days horizon Aegean Airlines SA is expected to generate 0.85 times more return on investment than Byggmax Group. However, Aegean Airlines SA is 1.18 times less risky than Byggmax Group. It trades about 0.07 of its potential returns per unit of risk. Byggmax Group AB is currently generating about 0.03 per unit of risk. If you would invest 493.00 in Aegean Airlines SA on September 13, 2024 and sell it today you would earn a total of 512.00 from holding Aegean Airlines SA or generate 103.85% 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. Byggmax Group AB
Performance |
| Timeline |
| Aegean Airlines SA |
| Byggmax Group AB |
Aegean Airlines and Byggmax Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and Byggmax Group
The main advantage of trading using opposite Aegean Airlines and Byggmax Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, Byggmax Group 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 Byggmax Group will offset losses from the drop in Byggmax Group's long position.| Aegean Airlines vs. RYANAIR HLDGS ADR | Aegean Airlines vs. Ryanair Holdings plc | Aegean Airlines vs. Superior Plus Corp | Aegean Airlines vs. SIVERS SEMICONDUCTORS AB |
| Byggmax Group vs. Aegean Airlines SA | Byggmax Group vs. Xenia Hotels Resorts | Byggmax Group vs. Wyndham Hotels Resorts | Byggmax Group vs. SINGAPORE AIRLINES |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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