Correlation Between Aegean Airlines and Aimfinity Investment
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and Aimfinity Investment 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 Aimfinity Investment 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 Aimfinity Investment I, you can compare the effects of market volatilities on Aegean Airlines and Aimfinity Investment 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 Aimfinity Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and Aimfinity Investment.
Diversification Opportunities for Aegean Airlines and Aimfinity Investment
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aegean and Aimfinity is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and Aimfinity Investment I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aimfinity Investment 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 Aimfinity Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aimfinity Investment has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and Aimfinity Investment go up and down completely randomly.
Pair Corralation between Aegean Airlines and Aimfinity Investment
If you would invest 1,160 in Aimfinity Investment I on September 12, 2024 and sell it today you would earn a total of 40.00 from holding Aimfinity Investment I or generate 3.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Aegean Airlines SA vs. Aimfinity Investment I
Performance |
| Timeline |
| Aegean Airlines SA |
| Aimfinity Investment |
Aegean Airlines and Aimfinity Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and Aimfinity Investment
The main advantage of trading using opposite Aegean Airlines and Aimfinity Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, Aimfinity Investment 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 Aimfinity Investment will offset losses from the drop in Aimfinity Investment's long position.| Aegean Airlines vs. Copa Holdings SA | Aegean Airlines vs. United Airlines Holdings | Aegean Airlines vs. Delta Air Lines | Aegean Airlines vs. SkyWest |
| Aimfinity Investment vs. SkyWest | Aimfinity Investment vs. JetBlue Airways Corp | Aimfinity Investment vs. Aegean Airlines SA | Aimfinity Investment vs. United Utilities Group |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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