Correlation Between GREENX METALS and AEGEAN AIRLINES
Can any of the company-specific risk be diversified away by investing in both GREENX 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 GREENX 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 GREENX METALS LTD and AEGEAN AIRLINES, you can compare the effects of market volatilities on GREENX 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 GREENX METALS with a short position of AEGEAN AIRLINES. Check out your portfolio center. Please also check ongoing floating volatility patterns of GREENX METALS and AEGEAN AIRLINES.
Diversification Opportunities for GREENX METALS and AEGEAN AIRLINES
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between GREENX and AEGEAN is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding GREENX METALS LTD and AEGEAN AIRLINES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AEGEAN AIRLINES and GREENX 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 GREENX METALS LTD 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 GREENX METALS i.e., GREENX METALS and AEGEAN AIRLINES go up and down completely randomly.
Pair Corralation between GREENX METALS and AEGEAN AIRLINES
Assuming the 90 days trading horizon GREENX METALS is expected to generate 1.22 times less return on investment than AEGEAN AIRLINES. In addition to that, GREENX METALS is 2.45 times more volatile than AEGEAN AIRLINES. It trades about 0.03 of its total potential returns per unit of risk. AEGEAN AIRLINES is currently generating about 0.08 per unit of volatility. If you would invest 464.00 in AEGEAN AIRLINES on August 25, 2024 and sell it today you would earn a total of 470.00 from holding AEGEAN AIRLINES or generate 101.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GREENX METALS LTD vs. AEGEAN AIRLINES
Performance |
| Timeline |
| GREENX METALS LTD |
| AEGEAN AIRLINES |
GREENX METALS and AEGEAN AIRLINES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GREENX METALS and AEGEAN AIRLINES
The main advantage of trading using opposite GREENX METALS and AEGEAN AIRLINES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GREENX 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's long position.| GREENX METALS vs. PERENNIAL ENERGY HD 01 | GREENX METALS vs. Superior Plus Corp | GREENX METALS vs. NMI Holdings | GREENX METALS vs. Origin Agritech |
| AEGEAN AIRLINES vs. H FARM SPA | AEGEAN AIRLINES vs. North American Construction | AEGEAN AIRLINES vs. MUTUIONLINE | AEGEAN AIRLINES vs. Sumitomo Mitsui Construction |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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