Correlation Between Aegean Airlines and Thyssenkrupp
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and Thyssenkrupp 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 Thyssenkrupp 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 thyssenkrupp AG, you can compare the effects of market volatilities on Aegean Airlines and Thyssenkrupp 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 Thyssenkrupp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and Thyssenkrupp.
Diversification Opportunities for Aegean Airlines and Thyssenkrupp
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aegean and Thyssenkrupp is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and thyssenkrupp AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on thyssenkrupp AG 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 Thyssenkrupp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of thyssenkrupp AG has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and Thyssenkrupp go up and down completely randomly.
Pair Corralation between Aegean Airlines and Thyssenkrupp
Assuming the 90 days horizon Aegean Airlines SA is expected to generate 0.61 times more return on investment than Thyssenkrupp. However, Aegean Airlines SA is 1.63 times less risky than Thyssenkrupp. It trades about 0.17 of its potential returns per unit of risk. thyssenkrupp AG is currently generating about 0.1 per unit of risk. If you would invest 949.00 in Aegean Airlines SA on September 28, 2024 and sell it today you would earn a total of 53.00 from holding Aegean Airlines SA or generate 5.58% 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. thyssenkrupp AG
Performance |
| Timeline |
| Aegean Airlines SA |
| thyssenkrupp AG |
Aegean Airlines and Thyssenkrupp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and Thyssenkrupp
The main advantage of trading using opposite Aegean Airlines and Thyssenkrupp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, Thyssenkrupp 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 Thyssenkrupp will offset losses from the drop in Thyssenkrupp's long position.| Aegean Airlines vs. Delta Air Lines | Aegean Airlines vs. Air China Limited | Aegean Airlines vs. AIR CHINA LTD | Aegean Airlines vs. RYANAIR HLDGS ADR |
| Thyssenkrupp vs. Allegheny Technologies Incorporated | Thyssenkrupp vs. China International Marine | Thyssenkrupp vs. thyssenkrupp AG | Thyssenkrupp vs. thyssenkrupp AG |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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