Correlation Between Aegean Airlines and Custom Truck
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and Custom Truck 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 Custom Truck 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 Custom Truck One, you can compare the effects of market volatilities on Aegean Airlines and Custom Truck 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 Custom Truck. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and Custom Truck.
Diversification Opportunities for Aegean Airlines and Custom Truck
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aegean and Custom is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and Custom Truck One in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Custom Truck One 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 Custom Truck. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Custom Truck One has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and Custom Truck go up and down completely randomly.
Pair Corralation between Aegean Airlines and Custom Truck
Assuming the 90 days horizon Aegean Airlines SA is expected to generate 0.41 times more return on investment than Custom Truck. However, Aegean Airlines SA is 2.42 times less risky than Custom Truck. It trades about 0.12 of its potential returns per unit of risk. Custom Truck One is currently generating about -0.06 per unit of risk. If you would invest 1,025 in Aegean Airlines SA on January 13, 2025 and sell it today you would earn a total of 170.00 from holding Aegean Airlines SA or generate 16.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 96.97% |
| Values | Daily Returns |
Aegean Airlines SA vs. Custom Truck One
Performance |
| Timeline |
| Aegean Airlines SA |
| Custom Truck One |
Aegean Airlines and Custom Truck Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and Custom Truck
The main advantage of trading using opposite Aegean Airlines and Custom Truck positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, Custom Truck 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 Custom Truck will offset losses from the drop in Custom Truck'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 |
| Custom Truck vs. PROG Holdings | Custom Truck vs. McGrath RentCorp | Custom Truck vs. HE Equipment Services | Custom Truck vs. GATX Corporation |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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