Correlation Between Aegean Airlines and Philippos Nakas
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and Philippos Nakas 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 Philippos Nakas 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 Philippos Nakas SA, you can compare the effects of market volatilities on Aegean Airlines and Philippos Nakas 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 Philippos Nakas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and Philippos Nakas.
Diversification Opportunities for Aegean Airlines and Philippos Nakas
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aegean and Philippos is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and Philippos Nakas SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Philippos Nakas SA 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 Philippos Nakas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Philippos Nakas SA has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and Philippos Nakas go up and down completely randomly.
Pair Corralation between Aegean Airlines and Philippos Nakas
Assuming the 90 days trading horizon Aegean Airlines SA is expected to generate 0.62 times more return on investment than Philippos Nakas. However, Aegean Airlines SA is 1.62 times less risky than Philippos Nakas. It trades about 0.07 of its potential returns per unit of risk. Philippos Nakas SA is currently generating about 0.04 per unit of risk. If you would invest 540.00 in Aegean Airlines SA on September 12, 2024 and sell it today you would earn a total of 461.00 from holding Aegean Airlines SA or generate 85.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.49% |
| Values | Daily Returns |
Aegean Airlines SA vs. Philippos Nakas SA
Performance |
| Timeline |
| Aegean Airlines SA |
| Philippos Nakas SA |
Aegean Airlines and Philippos Nakas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and Philippos Nakas
The main advantage of trading using opposite Aegean Airlines and Philippos Nakas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, Philippos Nakas 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 Philippos Nakas will offset losses from the drop in Philippos Nakas' 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 |
| Philippos Nakas vs. Aegean Airlines SA | Philippos Nakas vs. CPI Computer Peripherals | Philippos Nakas vs. Optronics Technologies SA | Philippos Nakas vs. Technical Olympic 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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