Correlation Between Aegean Airlines and Intracom Constructions
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and Intracom Constructions 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 Intracom Constructions 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 Intracom Constructions Societe, you can compare the effects of market volatilities on Aegean Airlines and Intracom Constructions 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 Intracom Constructions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and Intracom Constructions.
Diversification Opportunities for Aegean Airlines and Intracom Constructions
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aegean and Intracom is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and Intracom Constructions Societe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intracom Constructions 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 Intracom Constructions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intracom Constructions has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and Intracom Constructions go up and down completely randomly.
Pair Corralation between Aegean Airlines and Intracom Constructions
Assuming the 90 days trading horizon Aegean Airlines SA is expected to generate 1.0 times more return on investment than Intracom Constructions. However, Aegean Airlines SA is 1.0 times less risky than Intracom Constructions. It trades about 0.11 of its potential returns per unit of risk. Intracom Constructions Societe is currently generating about 0.1 per unit of risk. If you would invest 1,001 in Aegean Airlines SA on November 30, 2024 and sell it today you would earn a total of 76.00 from holding Aegean Airlines SA or generate 7.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aegean Airlines SA vs. Intracom Constructions Societe
Performance |
| Timeline |
| Aegean Airlines SA |
| Intracom Constructions |
Aegean Airlines and Intracom Constructions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and Intracom Constructions
The main advantage of trading using opposite Aegean Airlines and Intracom Constructions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, Intracom Constructions 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 Intracom Constructions will offset losses from the drop in Intracom Constructions' 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 |
| Intracom Constructions vs. Mytilineos SA | Intracom Constructions vs. Intracom Holdings SA | Intracom Constructions vs. Ellaktor SA | Intracom Constructions vs. GEK TERNA Holdings |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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