Correlation Between PACIFIC ONLINE and Aegean Airlines
Can any of the company-specific risk be diversified away by investing in both PACIFIC ONLINE 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 PACIFIC ONLINE and Aegean Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PACIFIC ONLINE and Aegean Airlines SA, you can compare the effects of market volatilities on PACIFIC ONLINE 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 PACIFIC ONLINE with a short position of Aegean Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of PACIFIC ONLINE and Aegean Airlines.
Diversification Opportunities for PACIFIC ONLINE and Aegean Airlines
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PACIFIC and Aegean is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PACIFIC ONLINE 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 PACIFIC ONLINE 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 PACIFIC ONLINE 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 PACIFIC ONLINE i.e., PACIFIC ONLINE and Aegean Airlines go up and down completely randomly.
Pair Corralation between PACIFIC ONLINE and Aegean Airlines
Assuming the 90 days trading horizon PACIFIC ONLINE is expected to generate 0.98 times more return on investment than Aegean Airlines. However, PACIFIC ONLINE is 1.02 times less risky than Aegean Airlines. It trades about 0.05 of its potential returns per unit of risk. Aegean Airlines SA is currently generating about 0.04 per unit of risk. If you would invest 10.00 in PACIFIC ONLINE on September 4, 2024 and sell it today you would earn a total of 5.00 from holding PACIFIC ONLINE or generate 50.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PACIFIC ONLINE vs. Aegean Airlines SA
Performance |
| Timeline |
| PACIFIC ONLINE |
| Aegean Airlines SA |
PACIFIC ONLINE and Aegean Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PACIFIC ONLINE and Aegean Airlines
The main advantage of trading using opposite PACIFIC ONLINE and Aegean Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PACIFIC ONLINE 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.| PACIFIC ONLINE vs. TOTAL GABON | PACIFIC ONLINE vs. Walgreens Boots Alliance | PACIFIC ONLINE vs. Peak Resources Limited |
| Aegean Airlines vs. Delta Air Lines | Aegean Airlines vs. AIR CHINA LTD | Aegean Airlines vs. RYANAIR HLDGS ADR | Aegean Airlines vs. Southwest Airlines Co |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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