Correlation Between Aegean Airlines and BriQ Properties
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and BriQ Properties 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 BriQ Properties 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 BriQ Properties Real, you can compare the effects of market volatilities on Aegean Airlines and BriQ Properties 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 BriQ Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and BriQ Properties.
Diversification Opportunities for Aegean Airlines and BriQ Properties
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aegean and BriQ is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and BriQ Properties Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BriQ Properties Real 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 BriQ Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BriQ Properties Real has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and BriQ Properties go up and down completely randomly.
Pair Corralation between Aegean Airlines and BriQ Properties
Assuming the 90 days trading horizon Aegean Airlines SA is expected to generate 2.32 times more return on investment than BriQ Properties. However, Aegean Airlines is 2.32 times more volatile than BriQ Properties Real. It trades about 0.05 of its potential returns per unit of risk. BriQ Properties Real is currently generating about 0.04 per unit of risk. If you would invest 697.00 in Aegean Airlines SA on August 27, 2024 and sell it today you would earn a total of 261.00 from holding Aegean Airlines SA or generate 37.45% 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. BriQ Properties Real
Performance |
| Timeline |
| Aegean Airlines SA |
| BriQ Properties Real |
Aegean Airlines and BriQ Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and BriQ Properties
The main advantage of trading using opposite Aegean Airlines and BriQ Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, BriQ Properties 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 BriQ Properties will offset losses from the drop in BriQ Properties' 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 |
| BriQ Properties vs. Mytilineos SA | BriQ Properties vs. Motor Oil Corinth | BriQ Properties vs. Hellenic Petroleum SA | BriQ Properties vs. National Bank of |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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