Correlation Between Aegean Airlines and Delta Air
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and Delta Air 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 Delta Air 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 Delta Air Lines, you can compare the effects of market volatilities on Aegean Airlines and Delta Air 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 Delta Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and Delta Air.
Diversification Opportunities for Aegean Airlines and Delta Air
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aegean and Delta is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and Delta Air Lines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delta Air Lines 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 Delta Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delta Air Lines has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and Delta Air go up and down completely randomly.
Pair Corralation between Aegean Airlines and Delta Air
Assuming the 90 days horizon Aegean Airlines SA is expected to under-perform the Delta Air. But the pink sheet apears to be less risky and, when comparing its historical volatility, Aegean Airlines SA is 1.05 times less risky than Delta Air. The pink sheet trades about -0.22 of its potential returns per unit of risk. The Delta Air Lines is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 5,538 in Delta Air Lines on August 28, 2024 and sell it today you would earn a total of 911.00 from holding Delta Air Lines or generate 16.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aegean Airlines SA vs. Delta Air Lines
Performance |
| Timeline |
| Aegean Airlines SA |
| Delta Air Lines |
Aegean Airlines and Delta Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and Delta Air
The main advantage of trading using opposite Aegean Airlines and Delta Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, Delta Air 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 Delta Air will offset losses from the drop in Delta Air'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 |
| Delta Air vs. American Airlines Group | Delta Air vs. Southwest Airlines | Delta Air vs. JetBlue Airways Corp | Delta Air vs. Spirit Airlines |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |