Correlation Between Gaztransport Technigaz and Aegean Airlines
Can any of the company-specific risk be diversified away by investing in both Gaztransport Technigaz 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 Gaztransport Technigaz and Aegean Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gaztransport Technigaz SA and Aegean Airlines SA, you can compare the effects of market volatilities on Gaztransport Technigaz 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 Gaztransport Technigaz with a short position of Aegean Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport Technigaz and Aegean Airlines.
Diversification Opportunities for Gaztransport Technigaz and Aegean Airlines
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gaztransport and Aegean is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport Technigaz SA 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 Gaztransport Technigaz 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 Gaztransport Technigaz SA 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 Gaztransport Technigaz i.e., Gaztransport Technigaz and Aegean Airlines go up and down completely randomly.
Pair Corralation between Gaztransport Technigaz and Aegean Airlines
Assuming the 90 days horizon Gaztransport Technigaz SA is expected to under-perform the Aegean Airlines. In addition to that, Gaztransport Technigaz is 1.09 times more volatile than Aegean Airlines SA. It trades about -0.2 of its total potential returns per unit of risk. Aegean Airlines SA is currently generating about 0.21 per unit of volatility. If you would invest 940.00 in Aegean Airlines SA on September 24, 2024 and sell it today you would earn a total of 66.00 from holding Aegean Airlines SA or generate 7.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaztransport Technigaz SA vs. Aegean Airlines SA
Performance |
| Timeline |
| Gaztransport Technigaz |
| Aegean Airlines SA |
Gaztransport Technigaz and Aegean Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport Technigaz and Aegean Airlines
The main advantage of trading using opposite Gaztransport Technigaz and Aegean Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport Technigaz 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.| Gaztransport Technigaz vs. Schlumberger Limited | Gaztransport Technigaz vs. Halliburton | Gaztransport Technigaz vs. Halliburton | Gaztransport Technigaz vs. Baker Hughes Co |
| Aegean Airlines vs. Delta Air Lines | Aegean Airlines vs. Air China Limited | Aegean Airlines vs. AIR CHINA LTD | Aegean Airlines vs. RYANAIR HLDGS ADR |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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