Correlation Between Aegean Airlines and Hyrican Informationssyst
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and Hyrican Informationssyst 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 Hyrican Informationssyst 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 Hyrican Informationssysteme Aktiengesellschaft, you can compare the effects of market volatilities on Aegean Airlines and Hyrican Informationssyst 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 Hyrican Informationssyst. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and Hyrican Informationssyst.
Diversification Opportunities for Aegean Airlines and Hyrican Informationssyst
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aegean and Hyrican is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and Hyrican Informationssysteme Ak in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyrican Informationssyst 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 Hyrican Informationssyst. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyrican Informationssyst has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and Hyrican Informationssyst go up and down completely randomly.
Pair Corralation between Aegean Airlines and Hyrican Informationssyst
Assuming the 90 days horizon Aegean Airlines SA is expected to generate 0.98 times more return on investment than Hyrican Informationssyst. However, Aegean Airlines SA is 1.02 times less risky than Hyrican Informationssyst. It trades about 0.07 of its potential returns per unit of risk. Hyrican Informationssysteme Aktiengesellschaft is currently generating about 0.04 per unit of risk. If you would invest 473.00 in Aegean Airlines SA on September 3, 2024 and sell it today you would earn a total of 477.00 from holding Aegean Airlines SA or generate 100.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aegean Airlines SA vs. Hyrican Informationssysteme Ak
Performance |
| Timeline |
| Aegean Airlines SA |
| Hyrican Informationssyst |
Aegean Airlines and Hyrican Informationssyst Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and Hyrican Informationssyst
The main advantage of trading using opposite Aegean Airlines and Hyrican Informationssyst positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, Hyrican Informationssyst 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 Hyrican Informationssyst will offset losses from the drop in Hyrican Informationssyst's long position.| Aegean Airlines vs. ETFS Coffee ETC | Aegean Airlines vs. Darden Restaurants | Aegean Airlines vs. Waste Management | Aegean Airlines vs. BJs Restaurants |
| Hyrican Informationssyst vs. Aegean Airlines SA | Hyrican Informationssyst vs. United Airlines Holdings | Hyrican Informationssyst vs. ALBIS LEASING AG | Hyrican Informationssyst vs. BLUESCOPE STEEL |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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