Correlation Between Aegean Airlines and Alpha Trust
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and Alpha Trust 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 Alpha Trust 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 Alpha Trust Mutual, you can compare the effects of market volatilities on Aegean Airlines and Alpha Trust 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 Alpha Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and Alpha Trust.
Diversification Opportunities for Aegean Airlines and Alpha Trust
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aegean and Alpha is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and Alpha Trust Mutual in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpha Trust Mutual 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 Alpha Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alpha Trust Mutual has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and Alpha Trust go up and down completely randomly.
Pair Corralation between Aegean Airlines and Alpha Trust
Assuming the 90 days trading horizon Aegean Airlines SA is expected to under-perform the Alpha Trust. In addition to that, Aegean Airlines is 3.55 times more volatile than Alpha Trust Mutual. It trades about -0.13 of its total potential returns per unit of risk. Alpha Trust Mutual is currently generating about 0.03 per unit of volatility. If you would invest 876.00 in Alpha Trust Mutual on August 28, 2024 and sell it today you would earn a total of 2.00 from holding Alpha Trust Mutual or generate 0.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aegean Airlines SA vs. Alpha Trust Mutual
Performance |
| Timeline |
| Aegean Airlines SA |
| Alpha Trust Mutual |
Aegean Airlines and Alpha Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and Alpha Trust
The main advantage of trading using opposite Aegean Airlines and Alpha Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, Alpha Trust 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 Alpha Trust will offset losses from the drop in Alpha Trust'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 |
| Alpha Trust vs. Jumbo SA | Alpha Trust vs. Gr Sarantis SA | Alpha Trust vs. Aegean Airlines SA | Alpha Trust vs. Motor Oil Corinth |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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