Correlation Between Aegean Airlines and Alumil Aluminium
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and Alumil Aluminium 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 Aegean Airlines and Alumil Aluminium into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aegean Airlines SA and Alumil Aluminium Industry, you can compare the effects of market volatilities on Aegean Airlines and Alumil Aluminium 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 Aegean Airlines with a short position of Alumil Aluminium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and Alumil Aluminium.
Diversification Opportunities for Aegean Airlines and Alumil Aluminium
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aegean and Alumil is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and Alumil Aluminium Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alumil Aluminium Industry and Aegean Airlines 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 Aegean Airlines SA are associated (or correlated) with Alumil Aluminium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alumil Aluminium Industry has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and Alumil Aluminium go up and down completely randomly.
Pair Corralation between Aegean Airlines and Alumil Aluminium
Assuming the 90 days trading horizon Aegean Airlines SA is expected to under-perform the Alumil Aluminium. But the stock apears to be less risky and, when comparing its historical volatility, Aegean Airlines SA is 1.64 times less risky than Alumil Aluminium. The stock trades about -0.09 of its potential returns per unit of risk. The Alumil Aluminium Industry is currently generating about 0.39 of returns per unit of risk over similar time horizon. If you would invest 320.00 in Alumil Aluminium Industry on August 31, 2024 and sell it today you would earn a total of 66.00 from holding Alumil Aluminium Industry or generate 20.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Aegean Airlines SA vs. Alumil Aluminium Industry
Performance |
| Timeline |
| Aegean Airlines SA |
| Alumil Aluminium Industry |
Aegean Airlines and Alumil Aluminium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and Alumil Aluminium
The main advantage of trading using opposite Aegean Airlines and Alumil Aluminium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, Alumil Aluminium 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 Alumil Aluminium will offset losses from the drop in Alumil Aluminium's long position.| Aegean Airlines vs. Mytilineos SA | Aegean Airlines vs. Greek Organization of | Aegean Airlines vs. Motor Oil Corinth | Aegean Airlines vs. Alpha Services and |
| Alumil Aluminium vs. Hellenic Petroleum SA | Alumil Aluminium vs. Mytilineos SA | Alumil Aluminium vs. GEK TERNA Holdings | Alumil Aluminium vs. Aegean Airlines SA |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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