Correlation Between Aegean Airlines and GOLD ROAD
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and GOLD ROAD 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 GOLD ROAD 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 GOLD ROAD RES, you can compare the effects of market volatilities on Aegean Airlines and GOLD ROAD 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 GOLD ROAD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and GOLD ROAD.
Diversification Opportunities for Aegean Airlines and GOLD ROAD
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aegean and GOLD is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and GOLD ROAD RES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GOLD ROAD RES 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 GOLD ROAD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GOLD ROAD RES has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and GOLD ROAD go up and down completely randomly.
Pair Corralation between Aegean Airlines and GOLD ROAD
Assuming the 90 days horizon Aegean Airlines SA is expected to generate 0.82 times more return on investment than GOLD ROAD. However, Aegean Airlines SA is 1.22 times less risky than GOLD ROAD. It trades about 0.07 of its potential returns per unit of risk. GOLD ROAD RES is currently generating about 0.02 per unit of risk. If you would invest 498.00 in Aegean Airlines SA on September 24, 2024 and sell it today you would earn a total of 508.00 from holding Aegean Airlines SA or generate 102.01% 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. GOLD ROAD RES
Performance |
| Timeline |
| Aegean Airlines SA |
| GOLD ROAD RES |
Aegean Airlines and GOLD ROAD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and GOLD ROAD
The main advantage of trading using opposite Aegean Airlines and GOLD ROAD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, GOLD ROAD 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 GOLD ROAD will offset losses from the drop in GOLD ROAD's long position.| Aegean Airlines vs. Delta Air Lines | Aegean Airlines vs. Air China Limited | Aegean Airlines vs. AIR CHINA LTD | Aegean Airlines vs. RYANAIR HLDGS ADR |
| GOLD ROAD vs. EEDUCATION ALBERT AB | GOLD ROAD vs. G8 EDUCATION | GOLD ROAD vs. EMBARK EDUCATION LTD | GOLD ROAD vs. Host Hotels Resorts |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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