Correlation Between Aegean Airlines and BW Offshore
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and BW Offshore 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 BW Offshore 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 BW Offshore Limited, you can compare the effects of market volatilities on Aegean Airlines and BW Offshore 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 BW Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and BW Offshore.
Diversification Opportunities for Aegean Airlines and BW Offshore
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aegean and BWOFY is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and BW Offshore Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BW Offshore Limited 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 BW Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BW Offshore Limited has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and BW Offshore go up and down completely randomly.
Pair Corralation between Aegean Airlines and BW Offshore
If you would invest 538.00 in BW Offshore Limited on September 21, 2024 and sell it today you would earn a total of 17.00 from holding BW Offshore Limited or generate 3.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Aegean Airlines SA vs. BW Offshore Limited
Performance |
| Timeline |
| Aegean Airlines SA |
| BW Offshore Limited |
Aegean Airlines and BW Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and BW Offshore
The main advantage of trading using opposite Aegean Airlines and BW Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, BW Offshore 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 BW Offshore will offset losses from the drop in BW Offshore'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 |
| BW Offshore vs. Boston Properties | BW Offshore vs. Franklin Street Properties | BW Offshore vs. East Africa Metals | BW Offshore vs. Teradyne |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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