Correlation Between Aegean Airlines and Technical Olympic
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and Technical Olympic 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 Technical Olympic 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 Technical Olympic SA, you can compare the effects of market volatilities on Aegean Airlines and Technical Olympic 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 Technical Olympic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and Technical Olympic.
Diversification Opportunities for Aegean Airlines and Technical Olympic
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aegean and Technical is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and Technical Olympic SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Technical Olympic 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 Technical Olympic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Technical Olympic has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and Technical Olympic go up and down completely randomly.
Pair Corralation between Aegean Airlines and Technical Olympic
Assuming the 90 days trading horizon Aegean Airlines SA is expected to under-perform the Technical Olympic. In addition to that, Aegean Airlines is 1.24 times more volatile than Technical Olympic SA. It trades about -0.11 of its total potential returns per unit of risk. Technical Olympic SA is currently generating about -0.1 per unit of volatility. If you would invest 290.00 in Technical Olympic SA on September 3, 2024 and sell it today you would lose (57.00) from holding Technical Olympic SA or give up 19.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aegean Airlines SA vs. Technical Olympic SA
Performance |
| Timeline |
| Aegean Airlines SA |
| Technical Olympic |
Aegean Airlines and Technical Olympic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and Technical Olympic
The main advantage of trading using opposite Aegean Airlines and Technical Olympic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, Technical Olympic 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 Technical Olympic will offset losses from the drop in Technical Olympic'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 |
| Technical Olympic vs. GEK TERNA Holdings | Technical Olympic vs. Avax SA | Technical Olympic vs. IKloukinas ILappas SA | Technical Olympic vs. Proodeftiki 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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