Correlation Between Aegean Airlines and Identiv
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and Identiv 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 Identiv 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 Identiv, you can compare the effects of market volatilities on Aegean Airlines and Identiv 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 Identiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and Identiv.
Diversification Opportunities for Aegean Airlines and Identiv
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aegean and Identiv is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and Identiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Identiv 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 Identiv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Identiv has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and Identiv go up and down completely randomly.
Pair Corralation between Aegean Airlines and Identiv
Assuming the 90 days horizon Aegean Airlines SA is expected to generate 0.62 times more return on investment than Identiv. However, Aegean Airlines SA is 1.61 times less risky than Identiv. It trades about 0.01 of its potential returns per unit of risk. Identiv is currently generating about -0.08 per unit of risk. If you would invest 1,022 in Aegean Airlines SA on November 7, 2024 and sell it today you would earn a total of 1.00 from holding Aegean Airlines SA or generate 0.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.3% |
| Values | Daily Returns |
Aegean Airlines SA vs. Identiv
Performance |
| Timeline |
| Aegean Airlines SA |
| Identiv |
Aegean Airlines and Identiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and Identiv
The main advantage of trading using opposite Aegean Airlines and Identiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, Identiv 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 Identiv will offset losses from the drop in Identiv's long position.| Aegean Airlines vs. Guidewire Software | Aegean Airlines vs. H2O Retailing | Aegean Airlines vs. CANON MARKETING JP | Aegean Airlines vs. Axway Software SA |
| Identiv vs. Hyatt Hotels | Identiv vs. DELTA AIR LINES | Identiv vs. Xenia Hotels Resorts | Identiv vs. NORWEGIAN AIR SHUT |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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