Correlation Between AM EAGLE and Ryanair Holdings
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By analyzing existing cross correlation between AM EAGLE OUTFITTERS and Ryanair Holdings plc, you can compare the effects of market volatilities on AM EAGLE and Ryanair Holdings 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 AM EAGLE with a short position of Ryanair Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of AM EAGLE and Ryanair Holdings.
Diversification Opportunities for AM EAGLE and Ryanair Holdings
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AFG and Ryanair is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding AM EAGLE OUTFITTERS and Ryanair Holdings plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ryanair Holdings plc and AM EAGLE 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 AM EAGLE OUTFITTERS are associated (or correlated) with Ryanair Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ryanair Holdings plc has no effect on the direction of AM EAGLE i.e., AM EAGLE and Ryanair Holdings go up and down completely randomly.
Pair Corralation between AM EAGLE and Ryanair Holdings
Assuming the 90 days trading horizon AM EAGLE OUTFITTERS is expected to generate 1.47 times more return on investment than Ryanair Holdings. However, AM EAGLE is 1.47 times more volatile than Ryanair Holdings plc. It trades about 0.03 of its potential returns per unit of risk. Ryanair Holdings plc is currently generating about 0.04 per unit of risk. If you would invest 1,397 in AM EAGLE OUTFITTERS on September 3, 2024 and sell it today you would earn a total of 413.00 from holding AM EAGLE OUTFITTERS or generate 29.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AM EAGLE OUTFITTERS vs. Ryanair Holdings plc
Performance |
| Timeline |
| AM EAGLE OUTFITTERS |
| Ryanair Holdings plc |
AM EAGLE and Ryanair Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AM EAGLE and Ryanair Holdings
The main advantage of trading using opposite AM EAGLE and Ryanair Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AM EAGLE position performs unexpectedly, Ryanair Holdings 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 Ryanair Holdings will offset losses from the drop in Ryanair Holdings' long position.The idea behind AM EAGLE OUTFITTERS and Ryanair Holdings plc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Ryanair Holdings vs. REVO INSURANCE SPA | Ryanair Holdings vs. VIRG NATL BANKSH | Ryanair Holdings vs. Aozora Bank | Ryanair Holdings vs. Ameriprise Financial |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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