Correlation Between PLAYSTUDIOS and Aegean Airlines
Can any of the company-specific risk be diversified away by investing in both PLAYSTUDIOS 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 PLAYSTUDIOS and Aegean Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PLAYSTUDIOS A DL 0001 and Aegean Airlines SA, you can compare the effects of market volatilities on PLAYSTUDIOS 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 PLAYSTUDIOS with a short position of Aegean Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of PLAYSTUDIOS and Aegean Airlines.
Diversification Opportunities for PLAYSTUDIOS and Aegean Airlines
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PLAYSTUDIOS and Aegean is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding PLAYSTUDIOS A DL 0001 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 PLAYSTUDIOS 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 PLAYSTUDIOS A DL 0001 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 PLAYSTUDIOS i.e., PLAYSTUDIOS and Aegean Airlines go up and down completely randomly.
Pair Corralation between PLAYSTUDIOS and Aegean Airlines
Assuming the 90 days horizon PLAYSTUDIOS A DL 0001 is expected to generate 2.31 times more return on investment than Aegean Airlines. However, PLAYSTUDIOS is 2.31 times more volatile than Aegean Airlines SA. It trades about 0.3 of its potential returns per unit of risk. Aegean Airlines SA is currently generating about 0.08 per unit of risk. If you would invest 156.00 in PLAYSTUDIOS A DL 0001 on September 14, 2024 and sell it today you would earn a total of 48.00 from holding PLAYSTUDIOS A DL 0001 or generate 30.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PLAYSTUDIOS A DL 0001 vs. Aegean Airlines SA
Performance |
| Timeline |
| PLAYSTUDIOS A DL |
| Aegean Airlines SA |
PLAYSTUDIOS and Aegean Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PLAYSTUDIOS and Aegean Airlines
The main advantage of trading using opposite PLAYSTUDIOS and Aegean Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PLAYSTUDIOS 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.| PLAYSTUDIOS vs. Apple Inc | PLAYSTUDIOS vs. Apple Inc | PLAYSTUDIOS vs. Apple Inc | PLAYSTUDIOS vs. Apple Inc |
| Aegean Airlines vs. RYANAIR HLDGS ADR | Aegean Airlines vs. Ryanair Holdings plc | Aegean Airlines vs. Superior Plus Corp | Aegean Airlines vs. SIVERS SEMICONDUCTORS AB |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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