Correlation Between Aegean Airlines and Cleanaway Waste
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and Cleanaway Waste 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 Cleanaway Waste 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 Cleanaway Waste Management, you can compare the effects of market volatilities on Aegean Airlines and Cleanaway Waste 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 Cleanaway Waste. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and Cleanaway Waste.
Diversification Opportunities for Aegean Airlines and Cleanaway Waste
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aegean and Cleanaway is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and Cleanaway Waste Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cleanaway Waste Mana 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 Cleanaway Waste. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cleanaway Waste Mana has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and Cleanaway Waste go up and down completely randomly.
Pair Corralation between Aegean Airlines and Cleanaway Waste
Assuming the 90 days horizon Aegean Airlines SA is expected to generate 1.29 times more return on investment than Cleanaway Waste. However, Aegean Airlines is 1.29 times more volatile than Cleanaway Waste Management. It trades about 0.07 of its potential returns per unit of risk. Cleanaway Waste Management is currently generating about 0.02 per unit of risk. If you would invest 471.00 in Aegean Airlines SA on September 1, 2024 and sell it today you would earn a total of 479.00 from holding Aegean Airlines SA or generate 101.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aegean Airlines SA vs. Cleanaway Waste Management
Performance |
| Timeline |
| Aegean Airlines SA |
| Cleanaway Waste Mana |
Aegean Airlines and Cleanaway Waste Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and Cleanaway Waste
The main advantage of trading using opposite Aegean Airlines and Cleanaway Waste positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, Cleanaway Waste 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 Cleanaway Waste will offset losses from the drop in Cleanaway Waste's long position.| Aegean Airlines vs. Southwest Airlines Co | Aegean Airlines vs. Superior Plus Corp | Aegean Airlines vs. NMI Holdings | Aegean Airlines vs. Origin Agritech |
| Cleanaway Waste vs. THAI BEVERAGE | Cleanaway Waste vs. Seven West Media | Cleanaway Waste vs. Austevoll Seafood ASA | Cleanaway Waste vs. GigaMedia |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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