Correlation Between Aegean Airlines and URBAN OUTFITTERS
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and URBAN OUTFITTERS 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 URBAN OUTFITTERS 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 URBAN OUTFITTERS, you can compare the effects of market volatilities on Aegean Airlines and URBAN OUTFITTERS 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 URBAN OUTFITTERS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and URBAN OUTFITTERS.
Diversification Opportunities for Aegean Airlines and URBAN OUTFITTERS
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aegean and URBAN is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and URBAN OUTFITTERS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on URBAN OUTFITTERS 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 URBAN OUTFITTERS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of URBAN OUTFITTERS has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and URBAN OUTFITTERS go up and down completely randomly.
Pair Corralation between Aegean Airlines and URBAN OUTFITTERS
Assuming the 90 days horizon Aegean Airlines SA is expected to under-perform the URBAN OUTFITTERS. But the stock apears to be less risky and, when comparing its historical volatility, Aegean Airlines SA is 1.48 times less risky than URBAN OUTFITTERS. The stock trades about -0.02 of its potential returns per unit of risk. The URBAN OUTFITTERS is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 3,260 in URBAN OUTFITTERS on September 2, 2024 and sell it today you would earn a total of 1,220 from holding URBAN OUTFITTERS or generate 37.42% 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. URBAN OUTFITTERS
Performance |
| Timeline |
| Aegean Airlines SA |
| URBAN OUTFITTERS |
Aegean Airlines and URBAN OUTFITTERS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and URBAN OUTFITTERS
The main advantage of trading using opposite Aegean Airlines and URBAN OUTFITTERS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, URBAN OUTFITTERS 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 URBAN OUTFITTERS will offset losses from the drop in URBAN OUTFITTERS's long position.| Aegean Airlines vs. Superior Plus Corp | Aegean Airlines vs. NMI Holdings | Aegean Airlines vs. Origin Agritech | Aegean Airlines vs. SIVERS SEMICONDUCTORS AB |
| URBAN OUTFITTERS vs. SIVERS SEMICONDUCTORS AB | URBAN OUTFITTERS vs. Darden Restaurants | URBAN OUTFITTERS vs. Reliance Steel Aluminum | URBAN OUTFITTERS vs. Q2M Managementberatung 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |