Correlation Between Aegean Airlines and GungHo Online
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and GungHo Online 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 GungHo Online 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 GungHo Online Entertainment, you can compare the effects of market volatilities on Aegean Airlines and GungHo Online 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 GungHo Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and GungHo Online.
Diversification Opportunities for Aegean Airlines and GungHo Online
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aegean and GungHo is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and GungHo Online Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GungHo Online Entert 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 GungHo Online. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GungHo Online Entert has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and GungHo Online go up and down completely randomly.
Pair Corralation between Aegean Airlines and GungHo Online
Assuming the 90 days horizon Aegean Airlines SA is expected to generate 0.79 times more return on investment than GungHo Online. However, Aegean Airlines SA is 1.27 times less risky than GungHo Online. It trades about -0.05 of its potential returns per unit of risk. GungHo Online Entertainment is currently generating about -0.13 per unit of risk. If you would invest 972.00 in Aegean Airlines SA on September 3, 2024 and sell it today you would lose (22.00) from holding Aegean Airlines SA or give up 2.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aegean Airlines SA vs. GungHo Online Entertainment
Performance |
| Timeline |
| Aegean Airlines SA |
| GungHo Online Entert |
Aegean Airlines and GungHo Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and GungHo Online
The main advantage of trading using opposite Aegean Airlines and GungHo Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, GungHo Online 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 GungHo Online will offset losses from the drop in GungHo Online's long position.| Aegean Airlines vs. ETFS Coffee ETC | Aegean Airlines vs. Darden Restaurants | Aegean Airlines vs. Waste Management | Aegean Airlines vs. BJs Restaurants |
| GungHo Online vs. JIAHUA STORES | GungHo Online vs. FUYO GENERAL LEASE | GungHo Online vs. THORNEY TECHS LTD | GungHo Online vs. QURATE RETAIL INC |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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