Correlation Between Aegean Airlines and Sunny Optical
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and Sunny Optical 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 Sunny Optical 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 Sunny Optical Technology, you can compare the effects of market volatilities on Aegean Airlines and Sunny Optical 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 Sunny Optical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and Sunny Optical.
Diversification Opportunities for Aegean Airlines and Sunny Optical
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aegean and Sunny is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and Sunny Optical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunny Optical Technology 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 Sunny Optical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunny Optical Technology has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and Sunny Optical go up and down completely randomly.
Pair Corralation between Aegean Airlines and Sunny Optical
Assuming the 90 days horizon Aegean Airlines SA is expected to generate 0.62 times more return on investment than Sunny Optical. However, Aegean Airlines SA is 1.61 times less risky than Sunny Optical. It trades about 0.01 of its potential returns per unit of risk. Sunny Optical Technology is currently generating about 0.01 per unit of risk. If you would invest 946.00 in Aegean Airlines SA on September 4, 2024 and sell it today you would earn a total of 4.00 from holding Aegean Airlines SA or generate 0.42% 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. Sunny Optical Technology
Performance |
| Timeline |
| Aegean Airlines SA |
| Sunny Optical Technology |
Aegean Airlines and Sunny Optical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and Sunny Optical
The main advantage of trading using opposite Aegean Airlines and Sunny Optical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, Sunny Optical 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 Sunny Optical will offset losses from the drop in Sunny Optical's long position.| Aegean Airlines vs. Delta Air Lines | Aegean Airlines vs. AIR CHINA LTD | Aegean Airlines vs. RYANAIR HLDGS ADR | Aegean Airlines vs. Southwest Airlines Co |
| Sunny Optical vs. Hon Hai Precision | Sunny Optical vs. Samsung SDI Co | Sunny Optical vs. Murata Manufacturing Co | Sunny Optical vs. Mitsubishi Electric |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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