Correlation Between Aegean Airlines and STRAYER EDUCATION
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and STRAYER EDUCATION 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 STRAYER EDUCATION 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 STRAYER EDUCATION, you can compare the effects of market volatilities on Aegean Airlines and STRAYER EDUCATION 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 STRAYER EDUCATION. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and STRAYER EDUCATION.
Diversification Opportunities for Aegean Airlines and STRAYER EDUCATION
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aegean and STRAYER is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and STRAYER EDUCATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STRAYER EDUCATION 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 STRAYER EDUCATION. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STRAYER EDUCATION has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and STRAYER EDUCATION go up and down completely randomly.
Pair Corralation between Aegean Airlines and STRAYER EDUCATION
Assuming the 90 days horizon Aegean Airlines SA is expected to generate 1.55 times more return on investment than STRAYER EDUCATION. However, Aegean Airlines is 1.55 times more volatile than STRAYER EDUCATION. It trades about 0.08 of its potential returns per unit of risk. STRAYER EDUCATION is currently generating about 0.11 per unit of risk. If you would invest 962.00 in Aegean Airlines SA on September 14, 2024 and sell it today you would earn a total of 29.00 from holding Aegean Airlines SA or generate 3.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aegean Airlines SA vs. STRAYER EDUCATION
Performance |
| Timeline |
| Aegean Airlines SA |
| STRAYER EDUCATION |
Aegean Airlines and STRAYER EDUCATION Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and STRAYER EDUCATION
The main advantage of trading using opposite Aegean Airlines and STRAYER EDUCATION positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, STRAYER EDUCATION 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 STRAYER EDUCATION will offset losses from the drop in STRAYER EDUCATION's long position.| Aegean Airlines vs. RYANAIR HLDGS ADR | Aegean Airlines vs. Ryanair Holdings plc | Aegean Airlines vs. Superior Plus Corp | Aegean Airlines vs. SIVERS SEMICONDUCTORS AB |
| STRAYER EDUCATION vs. Apple Inc | STRAYER EDUCATION vs. Apple Inc | STRAYER EDUCATION vs. Apple Inc | STRAYER EDUCATION vs. Apple Inc |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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