Correlation Between Aegean Airlines and Ultra Clean
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and Ultra Clean 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 Ultra Clean 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 Ultra Clean Holdings, you can compare the effects of market volatilities on Aegean Airlines and Ultra Clean 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 Ultra Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and Ultra Clean.
Diversification Opportunities for Aegean Airlines and Ultra Clean
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aegean and Ultra is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and Ultra Clean Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ultra Clean Holdings 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 Ultra Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ultra Clean Holdings has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and Ultra Clean go up and down completely randomly.
Pair Corralation between Aegean Airlines and Ultra Clean
Assuming the 90 days horizon Aegean Airlines SA is expected to generate 0.68 times more return on investment than Ultra Clean. However, Aegean Airlines SA is 1.47 times less risky than Ultra Clean. It trades about 0.04 of its potential returns per unit of risk. Ultra Clean Holdings is currently generating about 0.0 per unit of risk. If you would invest 737.00 in Aegean Airlines SA on January 12, 2025 and sell it today you would earn a total of 343.00 from holding Aegean Airlines SA or generate 46.54% 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. Ultra Clean Holdings
Performance |
| Timeline |
| Aegean Airlines SA |
| Ultra Clean Holdings |
Aegean Airlines and Ultra Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and Ultra Clean
The main advantage of trading using opposite Aegean Airlines and Ultra Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, Ultra Clean 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 Ultra Clean will offset losses from the drop in Ultra Clean's long position.| Aegean Airlines vs. Alfa Financial Software | Aegean Airlines vs. Rayonier Advanced Materials | Aegean Airlines vs. Heidelberg Materials AG | Aegean Airlines vs. Constellation Software |
| Ultra Clean vs. ASML HOLDING NY | Ultra Clean vs. ASML Holding NV | Ultra Clean vs. ASML Holding NV | Ultra Clean vs. Applied Materials |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |