Correlation Between Aegean Airlines and Air Products
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and Air Products 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 Air Products 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 Air Products and, you can compare the effects of market volatilities on Aegean Airlines and Air Products 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 Air Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and Air Products.
Diversification Opportunities for Aegean Airlines and Air Products
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aegean and Air is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and Air Products and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Products 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 Air Products. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air Products has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and Air Products go up and down completely randomly.
Pair Corralation between Aegean Airlines and Air Products
Assuming the 90 days horizon Aegean Airlines SA is expected to under-perform the Air Products. In addition to that, Aegean Airlines is 2.24 times more volatile than Air Products and. It trades about -0.22 of its total potential returns per unit of risk. Air Products and is currently generating about 0.23 per unit of volatility. If you would invest 31,826 in Air Products and on August 28, 2024 and sell it today you would earn a total of 1,571 from holding Air Products and or generate 4.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aegean Airlines SA vs. Air Products and
Performance |
| Timeline |
| Aegean Airlines SA |
| Air Products |
Aegean Airlines and Air Products Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and Air Products
The main advantage of trading using opposite Aegean Airlines and Air Products positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, Air Products 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 Air Products will offset losses from the drop in Air Products' long position.| Aegean Airlines vs. Copa Holdings SA | Aegean Airlines vs. United Airlines Holdings | Aegean Airlines vs. Delta Air Lines | Aegean Airlines vs. SkyWest |
| Air Products vs. PPG Industries | Air Products vs. Ecolab Inc | Air Products vs. Sherwin Williams Co | Air Products vs. LyondellBasell Industries NV |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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