Correlation Between Aegean Airlines and Asure Software
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and Asure Software 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 Asure Software 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 Asure Software, you can compare the effects of market volatilities on Aegean Airlines and Asure Software 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 Asure Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and Asure Software.
Diversification Opportunities for Aegean Airlines and Asure Software
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aegean and Asure is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and Asure Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asure Software 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 Asure Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asure Software has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and Asure Software go up and down completely randomly.
Pair Corralation between Aegean Airlines and Asure Software
Assuming the 90 days horizon Aegean Airlines SA is expected to under-perform the Asure Software. But the pink sheet apears to be less risky and, when comparing its historical volatility, Aegean Airlines SA is 1.57 times less risky than Asure Software. The pink sheet trades about -0.22 of its potential returns per unit of risk. The Asure Software is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 831.00 in Asure Software on September 3, 2024 and sell it today you would earn a total of 148.00 from holding Asure Software or generate 17.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Aegean Airlines SA vs. Asure Software
Performance |
| Timeline |
| Aegean Airlines SA |
| Asure Software |
Aegean Airlines and Asure Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and Asure Software
The main advantage of trading using opposite Aegean Airlines and Asure Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, Asure Software 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 Asure Software will offset losses from the drop in Asure Software'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 |
| Asure Software vs. Alkami Technology | Asure Software vs. Blackbaud | Asure Software vs. Enfusion | Asure Software vs. Clearwater Analytics Holdings |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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