Correlation Between Aegean Airlines and Prodea Real
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and Prodea Real 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 Prodea Real 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 Prodea Real Estate, you can compare the effects of market volatilities on Aegean Airlines and Prodea Real 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 Prodea Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and Prodea Real.
Diversification Opportunities for Aegean Airlines and Prodea Real
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aegean and Prodea is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and Prodea Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prodea Real Estate 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 Prodea Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prodea Real Estate has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and Prodea Real go up and down completely randomly.
Pair Corralation between Aegean Airlines and Prodea Real
Assuming the 90 days trading horizon Aegean Airlines SA is expected to generate 0.86 times more return on investment than Prodea Real. However, Aegean Airlines SA is 1.16 times less risky than Prodea Real. It trades about 0.07 of its potential returns per unit of risk. Prodea Real Estate is currently generating about -0.02 per unit of risk. If you would invest 517.00 in Aegean Airlines SA on September 3, 2024 and sell it today you would earn a total of 431.00 from holding Aegean Airlines SA or generate 83.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 83.1% |
| Values | Daily Returns |
Aegean Airlines SA vs. Prodea Real Estate
Performance |
| Timeline |
| Aegean Airlines SA |
| Prodea Real Estate |
Aegean Airlines and Prodea Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and Prodea Real
The main advantage of trading using opposite Aegean Airlines and Prodea Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, Prodea Real 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 Prodea Real will offset losses from the drop in Prodea Real'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 |
| Prodea Real vs. Hellenic Telecommunications Organization | Prodea Real vs. Profile Systems Software | Prodea Real vs. Optima bank SA | Prodea Real vs. As Commercial Industrial |
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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