Correlation Between Aegean Airlines and Ubisoft Entertainment
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and Ubisoft Entertainment 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 Ubisoft Entertainment 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 Ubisoft Entertainment SA, you can compare the effects of market volatilities on Aegean Airlines and Ubisoft Entertainment 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 Ubisoft Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and Ubisoft Entertainment.
Diversification Opportunities for Aegean Airlines and Ubisoft Entertainment
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Aegean and Ubisoft is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and Ubisoft Entertainment SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ubisoft Entertainment 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 Ubisoft Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ubisoft Entertainment has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and Ubisoft Entertainment go up and down completely randomly.
Pair Corralation between Aegean Airlines and Ubisoft Entertainment
Assuming the 90 days horizon Aegean Airlines SA is expected to generate 0.66 times more return on investment than Ubisoft Entertainment. However, Aegean Airlines SA is 1.52 times less risky than Ubisoft Entertainment. It trades about -0.02 of its potential returns per unit of risk. Ubisoft Entertainment SA is currently generating about -0.06 per unit of risk. If you would invest 1,202 in Aegean Airlines SA on August 26, 2024 and sell it today you would lose (274.00) from holding Aegean Airlines SA or give up 22.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aegean Airlines SA vs. Ubisoft Entertainment SA
Performance |
| Timeline |
| Aegean Airlines SA |
| Ubisoft Entertainment |
Aegean Airlines and Ubisoft Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and Ubisoft Entertainment
The main advantage of trading using opposite Aegean Airlines and Ubisoft Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, Ubisoft Entertainment 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 Ubisoft Entertainment will offset losses from the drop in Ubisoft Entertainment's long position.| Aegean Airlines vs. Sterling Construction | Aegean Airlines vs. Daito Trust Construction | Aegean Airlines vs. Tianjin Capital Environmental | Aegean Airlines vs. Hanison Construction Holdings |
| Ubisoft Entertainment vs. Sea Limited | Ubisoft Entertainment vs. NEXON Co | Ubisoft Entertainment vs. Take Two Interactive Software | Ubisoft Entertainment vs. Bilibili |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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