Correlation Between Aegean Airlines and Mitsubishi Gas
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and Mitsubishi Gas 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 Mitsubishi Gas 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 Mitsubishi Gas Chemical, you can compare the effects of market volatilities on Aegean Airlines and Mitsubishi Gas 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 Mitsubishi Gas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and Mitsubishi Gas.
Diversification Opportunities for Aegean Airlines and Mitsubishi Gas
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aegean and Mitsubishi is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and Mitsubishi Gas Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitsubishi Gas Chemical 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 Mitsubishi Gas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitsubishi Gas Chemical has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and Mitsubishi Gas go up and down completely randomly.
Pair Corralation between Aegean Airlines and Mitsubishi Gas
Assuming the 90 days horizon Aegean Airlines SA is expected to under-perform the Mitsubishi Gas. In addition to that, Aegean Airlines is 1.28 times more volatile than Mitsubishi Gas Chemical. It trades about -0.01 of its total potential returns per unit of risk. Mitsubishi Gas Chemical is currently generating about 0.1 per unit of volatility. If you would invest 1,680 in Mitsubishi Gas Chemical on October 23, 2024 and sell it today you would earn a total of 30.00 from holding Mitsubishi Gas Chemical or generate 1.79% 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. Mitsubishi Gas Chemical
Performance |
| Timeline |
| Aegean Airlines SA |
| Mitsubishi Gas Chemical |
Aegean Airlines and Mitsubishi Gas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and Mitsubishi Gas
The main advantage of trading using opposite Aegean Airlines and Mitsubishi Gas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, Mitsubishi Gas 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 Mitsubishi Gas will offset losses from the drop in Mitsubishi Gas' 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 |
| Mitsubishi Gas vs. United Airlines Holdings | Mitsubishi Gas vs. Aegean Airlines SA | Mitsubishi Gas vs. COLUMBIA SPORTSWEAR | Mitsubishi Gas vs. PLAYWAY SA ZY 10 |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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