Correlation Between Aegean Airlines and SEALED AIR
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and SEALED AIR 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 SEALED AIR 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 SEALED AIR , you can compare the effects of market volatilities on Aegean Airlines and SEALED AIR 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 SEALED AIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and SEALED AIR.
Diversification Opportunities for Aegean Airlines and SEALED AIR
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aegean and SEALED is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and SEALED AIR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEALED AIR 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 SEALED AIR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEALED AIR has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and SEALED AIR go up and down completely randomly.
Pair Corralation between Aegean Airlines and SEALED AIR
Assuming the 90 days horizon Aegean Airlines SA is expected to generate 0.92 times more return on investment than SEALED AIR. However, Aegean Airlines SA is 1.08 times less risky than SEALED AIR. It trades about 0.2 of its potential returns per unit of risk. SEALED AIR is currently generating about -0.37 per unit of risk. If you would invest 1,005 in Aegean Airlines SA on October 11, 2024 and sell it today you would earn a total of 37.00 from holding Aegean Airlines SA or generate 3.68% 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. SEALED AIR
Performance |
| Timeline |
| Aegean Airlines SA |
| SEALED AIR |
Aegean Airlines and SEALED AIR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and SEALED AIR
The main advantage of trading using opposite Aegean Airlines and SEALED AIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, SEALED AIR 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 SEALED AIR will offset losses from the drop in SEALED AIR's long position.| Aegean Airlines vs. Playtech plc | Aegean Airlines vs. G8 EDUCATION | Aegean Airlines vs. Laureate Education | Aegean Airlines vs. Playmates Toys Limited |
| SEALED AIR vs. Tower Semiconductor | SEALED AIR vs. Hua Hong Semiconductor | SEALED AIR vs. Aegean Airlines SA | SEALED AIR vs. Elmos Semiconductor SE |
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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