Correlation Between Aegean Airlines and BANK MANDIRI
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and BANK MANDIRI 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 BANK MANDIRI 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 BANK MANDIRI, you can compare the effects of market volatilities on Aegean Airlines and BANK MANDIRI 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 BANK MANDIRI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and BANK MANDIRI.
Diversification Opportunities for Aegean Airlines and BANK MANDIRI
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Aegean and BANK is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and BANK MANDIRI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK MANDIRI 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 BANK MANDIRI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANK MANDIRI has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and BANK MANDIRI go up and down completely randomly.
Pair Corralation between Aegean Airlines and BANK MANDIRI
Assuming the 90 days horizon Aegean Airlines SA is expected to generate 1.3 times more return on investment than BANK MANDIRI. However, Aegean Airlines is 1.3 times more volatile than BANK MANDIRI. It trades about 0.03 of its potential returns per unit of risk. BANK MANDIRI is currently generating about -0.35 per unit of risk. If you would invest 1,018 in Aegean Airlines SA on October 16, 2024 and sell it today you would earn a total of 6.00 from holding Aegean Airlines SA or generate 0.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.12% |
| Values | Daily Returns |
Aegean Airlines SA vs. BANK MANDIRI
Performance |
| Timeline |
| Aegean Airlines SA |
| BANK MANDIRI |
Aegean Airlines and BANK MANDIRI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and BANK MANDIRI
The main advantage of trading using opposite Aegean Airlines and BANK MANDIRI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, BANK MANDIRI 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 BANK MANDIRI will offset losses from the drop in BANK MANDIRI's long position.| Aegean Airlines vs. Laureate Education | Aegean Airlines vs. STRAYER EDUCATION | Aegean Airlines vs. Magnachip Semiconductor | Aegean Airlines vs. Semiconductor Manufacturing International |
| BANK MANDIRI vs. Zijin Mining Group | BANK MANDIRI vs. MAGNUM MINING EXP | BANK MANDIRI vs. DETALION GAMES SA | BANK MANDIRI vs. FRACTAL GAMING GROUP |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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