Correlation Between Aegean Airlines and Gruppo Mutuionline
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and Gruppo Mutuionline 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 Gruppo Mutuionline 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 Gruppo Mutuionline SpA, you can compare the effects of market volatilities on Aegean Airlines and Gruppo Mutuionline 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 Gruppo Mutuionline. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and Gruppo Mutuionline.
Diversification Opportunities for Aegean Airlines and Gruppo Mutuionline
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aegean and Gruppo is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and Gruppo Mutuionline SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gruppo Mutuionline SpA 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 Gruppo Mutuionline. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gruppo Mutuionline SpA has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and Gruppo Mutuionline go up and down completely randomly.
Pair Corralation between Aegean Airlines and Gruppo Mutuionline
Assuming the 90 days horizon Aegean Airlines SA is expected to generate 1.21 times more return on investment than Gruppo Mutuionline. However, Aegean Airlines is 1.21 times more volatile than Gruppo Mutuionline SpA. It trades about 0.05 of its potential returns per unit of risk. Gruppo Mutuionline SpA is currently generating about 0.03 per unit of risk. If you would invest 641.00 in Aegean Airlines SA on October 27, 2024 and sell it today you would earn a total of 413.00 from holding Aegean Airlines SA or generate 64.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aegean Airlines SA vs. Gruppo Mutuionline SpA
Performance |
| Timeline |
| Aegean Airlines SA |
| Gruppo Mutuionline SpA |
Aegean Airlines and Gruppo Mutuionline Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and Gruppo Mutuionline
The main advantage of trading using opposite Aegean Airlines and Gruppo Mutuionline positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, Gruppo Mutuionline 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 Gruppo Mutuionline will offset losses from the drop in Gruppo Mutuionline's long position.| Aegean Airlines vs. MAANSHAN IRON H | Aegean Airlines vs. NEWELL RUBBERMAID | Aegean Airlines vs. CALTAGIRONE EDITORE | Aegean Airlines vs. Xiwang Special Steel |
| Gruppo Mutuionline vs. Canadian Utilities Limited | Gruppo Mutuionline vs. Major Drilling Group | Gruppo Mutuionline vs. INDO RAMA SYNTHETIC | Gruppo Mutuionline vs. Mitsubishi Gas Chemical |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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