Correlation Between Aegean Airlines and COLUMBIA SPORTSWEAR
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and COLUMBIA SPORTSWEAR 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 COLUMBIA SPORTSWEAR 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 COLUMBIA SPORTSWEAR, you can compare the effects of market volatilities on Aegean Airlines and COLUMBIA SPORTSWEAR 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 COLUMBIA SPORTSWEAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and COLUMBIA SPORTSWEAR.
Diversification Opportunities for Aegean Airlines and COLUMBIA SPORTSWEAR
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aegean and COLUMBIA is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and COLUMBIA SPORTSWEAR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COLUMBIA SPORTSWEAR 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 COLUMBIA SPORTSWEAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COLUMBIA SPORTSWEAR has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and COLUMBIA SPORTSWEAR go up and down completely randomly.
Pair Corralation between Aegean Airlines and COLUMBIA SPORTSWEAR
Assuming the 90 days horizon Aegean Airlines SA is expected to under-perform the COLUMBIA SPORTSWEAR. But the stock apears to be less risky and, when comparing its historical volatility, Aegean Airlines SA is 1.17 times less risky than COLUMBIA SPORTSWEAR. The stock trades about -0.13 of its potential returns per unit of risk. The COLUMBIA SPORTSWEAR is currently generating about 0.39 of returns per unit of risk over similar time horizon. If you would invest 6,973 in COLUMBIA SPORTSWEAR on August 31, 2024 and sell it today you would earn a total of 1,327 from holding COLUMBIA SPORTSWEAR or generate 19.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Aegean Airlines SA vs. COLUMBIA SPORTSWEAR
Performance |
| Timeline |
| Aegean Airlines SA |
| COLUMBIA SPORTSWEAR |
Aegean Airlines and COLUMBIA SPORTSWEAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and COLUMBIA SPORTSWEAR
The main advantage of trading using opposite Aegean Airlines and COLUMBIA SPORTSWEAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, COLUMBIA SPORTSWEAR 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 COLUMBIA SPORTSWEAR will offset losses from the drop in COLUMBIA SPORTSWEAR'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 |
| COLUMBIA SPORTSWEAR vs. SIVERS SEMICONDUCTORS AB | COLUMBIA SPORTSWEAR vs. Darden Restaurants | COLUMBIA SPORTSWEAR vs. Reliance Steel Aluminum | COLUMBIA SPORTSWEAR 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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