Correlation Between Aegean Airlines and Yuexiu Transport
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and Yuexiu Transport 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 Yuexiu Transport 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 Yuexiu Transport Infrastructure, you can compare the effects of market volatilities on Aegean Airlines and Yuexiu Transport 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 Yuexiu Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and Yuexiu Transport.
Diversification Opportunities for Aegean Airlines and Yuexiu Transport
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aegean and Yuexiu is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and Yuexiu Transport Infrastructur in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuexiu Transport Inf 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 Yuexiu Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yuexiu Transport Inf has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and Yuexiu Transport go up and down completely randomly.
Pair Corralation between Aegean Airlines and Yuexiu Transport
Assuming the 90 days horizon Aegean Airlines SA is expected to generate 2.34 times more return on investment than Yuexiu Transport. However, Aegean Airlines is 2.34 times more volatile than Yuexiu Transport Infrastructure. It trades about 0.21 of its potential returns per unit of risk. Yuexiu Transport Infrastructure is currently generating about 0.32 per unit of risk. If you would invest 940.00 in Aegean Airlines SA on September 24, 2024 and sell it today you would earn a total of 66.00 from holding Aegean Airlines SA or generate 7.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aegean Airlines SA vs. Yuexiu Transport Infrastructur
Performance |
| Timeline |
| Aegean Airlines SA |
| Yuexiu Transport Inf |
Aegean Airlines and Yuexiu Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and Yuexiu Transport
The main advantage of trading using opposite Aegean Airlines and Yuexiu Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, Yuexiu Transport 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 Yuexiu Transport will offset losses from the drop in Yuexiu Transport'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 |
| Yuexiu Transport vs. Transurban Group | Yuexiu Transport vs. Jiangsu Expressway | Yuexiu Transport vs. Zhejiang Expressway Co | Yuexiu Transport vs. Arcosa 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| CEOs Directory Screen CEOs from public companies around the world |