Correlation Between ADRIATIC METALS and Aegean Airlines
Can any of the company-specific risk be diversified away by investing in both ADRIATIC METALS and Aegean Airlines 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 ADRIATIC METALS and Aegean Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ADRIATIC METALS LS 013355 and Aegean Airlines SA, you can compare the effects of market volatilities on ADRIATIC METALS and Aegean Airlines 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 ADRIATIC METALS with a short position of Aegean Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of ADRIATIC METALS and Aegean Airlines.
Diversification Opportunities for ADRIATIC METALS and Aegean Airlines
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ADRIATIC and Aegean is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding ADRIATIC METALS LS 013355 and Aegean Airlines SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aegean Airlines SA and ADRIATIC METALS 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 ADRIATIC METALS LS 013355 are associated (or correlated) with Aegean Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aegean Airlines SA has no effect on the direction of ADRIATIC METALS i.e., ADRIATIC METALS and Aegean Airlines go up and down completely randomly.
Pair Corralation between ADRIATIC METALS and Aegean Airlines
Assuming the 90 days trading horizon ADRIATIC METALS is expected to generate 1.56 times less return on investment than Aegean Airlines. In addition to that, ADRIATIC METALS is 1.44 times more volatile than Aegean Airlines SA. It trades about 0.03 of its total potential returns per unit of risk. Aegean Airlines SA is currently generating about 0.06 per unit of volatility. If you would invest 575.00 in Aegean Airlines SA on October 18, 2024 and sell it today you would earn a total of 447.00 from holding Aegean Airlines SA or generate 77.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ADRIATIC METALS LS 013355 vs. Aegean Airlines SA
Performance |
| Timeline |
| ADRIATIC METALS LS |
| Aegean Airlines SA |
ADRIATIC METALS and Aegean Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ADRIATIC METALS and Aegean Airlines
The main advantage of trading using opposite ADRIATIC METALS and Aegean Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ADRIATIC METALS position performs unexpectedly, Aegean Airlines 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 Aegean Airlines will offset losses from the drop in Aegean Airlines' long position.| ADRIATIC METALS vs. PLAYTIKA HOLDING DL 01 | ADRIATIC METALS vs. Media and Games | ADRIATIC METALS vs. LG Display Co | ADRIATIC METALS vs. UNIVERSAL DISPLAY |
| Aegean Airlines vs. Calibre Mining Corp | Aegean Airlines vs. FIREWEED METALS P | Aegean Airlines vs. De Grey Mining | Aegean Airlines vs. ADRIATIC METALS LS 013355 |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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