Correlation Between TERADATA and AEGEAN AIRLINES
Can any of the company-specific risk be diversified away by investing in both TERADATA 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 TERADATA and AEGEAN AIRLINES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TERADATA and AEGEAN AIRLINES, you can compare the effects of market volatilities on TERADATA 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 TERADATA with a short position of AEGEAN AIRLINES. Check out your portfolio center. Please also check ongoing floating volatility patterns of TERADATA and AEGEAN AIRLINES.
Diversification Opportunities for TERADATA and AEGEAN AIRLINES
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between TERADATA and AEGEAN is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding TERADATA and AEGEAN AIRLINES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AEGEAN AIRLINES and TERADATA 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 TERADATA 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 has no effect on the direction of TERADATA i.e., TERADATA and AEGEAN AIRLINES go up and down completely randomly.
Pair Corralation between TERADATA and AEGEAN AIRLINES
Assuming the 90 days trading horizon TERADATA is expected to under-perform the AEGEAN AIRLINES. But the stock apears to be less risky and, when comparing its historical volatility, TERADATA is 1.63 times less risky than AEGEAN AIRLINES. The stock trades about -0.05 of its potential returns per unit of risk. The AEGEAN AIRLINES is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,005 in AEGEAN AIRLINES on October 11, 2024 and sell it today you would earn a total of 26.00 from holding AEGEAN AIRLINES or generate 2.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TERADATA vs. AEGEAN AIRLINES
Performance |
| Timeline |
| TERADATA |
| AEGEAN AIRLINES |
TERADATA and AEGEAN AIRLINES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TERADATA and AEGEAN AIRLINES
The main advantage of trading using opposite TERADATA and AEGEAN AIRLINES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TERADATA 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's long position.| TERADATA vs. RCS MediaGroup SpA | TERADATA vs. Flutter Entertainment PLC | TERADATA vs. MEDICAL FACILITIES NEW | TERADATA vs. PULSION Medical Systems |
| AEGEAN AIRLINES vs. TERADATA | AEGEAN AIRLINES vs. Automatic Data Processing | AEGEAN AIRLINES vs. Q2M Managementberatung AG | AEGEAN AIRLINES vs. MICRONIC MYDATA |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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