Correlation Between Aegean Airlines and Ring Energy
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and Ring Energy 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 Ring Energy 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 Ring Energy, you can compare the effects of market volatilities on Aegean Airlines and Ring Energy 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 Ring Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and Ring Energy.
Diversification Opportunities for Aegean Airlines and Ring Energy
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Aegean and Ring is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and Ring Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ring Energy 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 Ring Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ring Energy has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and Ring Energy go up and down completely randomly.
Pair Corralation between Aegean Airlines and Ring Energy
Assuming the 90 days horizon Aegean Airlines SA is expected to generate 0.58 times more return on investment than Ring Energy. However, Aegean Airlines SA is 1.73 times less risky than Ring Energy. It trades about 0.0 of its potential returns per unit of risk. Ring Energy is currently generating about -0.1 per unit of risk. If you would invest 1,014 in Aegean Airlines SA on September 23, 2024 and sell it today you would lose (8.00) from holding Aegean Airlines SA or give up 0.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aegean Airlines SA vs. Ring Energy
Performance |
| Timeline |
| Aegean Airlines SA |
| Ring Energy |
Aegean Airlines and Ring Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and Ring Energy
The main advantage of trading using opposite Aegean Airlines and Ring Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, Ring Energy 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 Ring Energy will offset losses from the drop in Ring Energy's long position.| Aegean Airlines vs. Khiron Life Sciences | Aegean Airlines vs. SANOK RUBBER ZY | Aegean Airlines vs. EAGLE MATERIALS | Aegean Airlines vs. NEWELL RUBBERMAID |
| Ring Energy vs. Coeur Mining | Ring Energy vs. Aegean Airlines SA | Ring Energy vs. JAPAN AIRLINES | Ring Energy vs. MAGNUM MINING EXP |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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