Correlation Between CTP NV and AEGEAN AIRLINES
Can any of the company-specific risk be diversified away by investing in both CTP NV 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 CTP NV and AEGEAN AIRLINES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CTP NV EO and AEGEAN AIRLINES, you can compare the effects of market volatilities on CTP NV 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 CTP NV with a short position of AEGEAN AIRLINES. Check out your portfolio center. Please also check ongoing floating volatility patterns of CTP NV and AEGEAN AIRLINES.
Diversification Opportunities for CTP NV and AEGEAN AIRLINES
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CTP and AEGEAN is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding CTP NV EO and AEGEAN AIRLINES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AEGEAN AIRLINES and CTP NV 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 CTP NV EO 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 CTP NV i.e., CTP NV and AEGEAN AIRLINES go up and down completely randomly.
Pair Corralation between CTP NV and AEGEAN AIRLINES
Assuming the 90 days horizon CTP NV EO is expected to generate 0.98 times more return on investment than AEGEAN AIRLINES. However, CTP NV EO is 1.02 times less risky than AEGEAN AIRLINES. It trades about -0.03 of its potential returns per unit of risk. AEGEAN AIRLINES is currently generating about -0.09 per unit of risk. If you would invest 1,516 in CTP NV EO on September 2, 2024 and sell it today you would lose (18.00) from holding CTP NV EO or give up 1.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CTP NV EO vs. AEGEAN AIRLINES
Performance |
| Timeline |
| CTP NV EO |
| AEGEAN AIRLINES |
CTP NV and AEGEAN AIRLINES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CTP NV and AEGEAN AIRLINES
The main advantage of trading using opposite CTP NV and AEGEAN AIRLINES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CTP NV 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.| CTP NV vs. AEGEAN AIRLINES | CTP NV vs. Warner Music Group | CTP NV vs. TROPHY GAMES DEV | CTP NV vs. GEAR4MUSIC LS 10 |
| AEGEAN AIRLINES vs. Reinsurance Group of | AEGEAN AIRLINES vs. Iridium Communications | AEGEAN AIRLINES vs. Universal Insurance Holdings | AEGEAN AIRLINES vs. Cogent Communications Holdings |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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