Correlation Between Aegean Airlines and Cinemark Holdings
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and Cinemark Holdings 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 Cinemark Holdings 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 Cinemark Holdings, you can compare the effects of market volatilities on Aegean Airlines and Cinemark 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 Aegean Airlines with a short position of Cinemark Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and Cinemark Holdings.
Diversification Opportunities for Aegean Airlines and Cinemark Holdings
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aegean and Cinemark is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and Cinemark Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cinemark Holdings 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 Cinemark Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cinemark Holdings has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and Cinemark Holdings go up and down completely randomly.
Pair Corralation between Aegean Airlines and Cinemark Holdings
Assuming the 90 days horizon Aegean Airlines SA is expected to under-perform the Cinemark Holdings. In addition to that, Aegean Airlines is 1.17 times more volatile than Cinemark Holdings. It trades about -0.22 of its total potential returns per unit of risk. Cinemark Holdings is currently generating about 0.31 per unit of volatility. If you would invest 2,937 in Cinemark Holdings on August 28, 2024 and sell it today you would earn a total of 388.00 from holding Cinemark Holdings or generate 13.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aegean Airlines SA vs. Cinemark Holdings
Performance |
| Timeline |
| Aegean Airlines SA |
| Cinemark Holdings |
Aegean Airlines and Cinemark Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and Cinemark Holdings
The main advantage of trading using opposite Aegean Airlines and Cinemark Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, Cinemark 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 Cinemark Holdings will offset losses from the drop in Cinemark Holdings' long position.| Aegean Airlines vs. Copa Holdings SA | Aegean Airlines vs. United Airlines Holdings | Aegean Airlines vs. Delta Air Lines | Aegean Airlines vs. SkyWest |
| Cinemark Holdings vs. News Corp B | Cinemark Holdings vs. Marcus | Cinemark Holdings vs. Liberty Media | Cinemark Holdings vs. Warner Music 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |