Correlation Between Aegean Airlines and Diodes Incorporated
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and Diodes Incorporated 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 Diodes Incorporated 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 Diodes Incorporated, you can compare the effects of market volatilities on Aegean Airlines and Diodes Incorporated 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 Diodes Incorporated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and Diodes Incorporated.
Diversification Opportunities for Aegean Airlines and Diodes Incorporated
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aegean and Diodes is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and Diodes Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Diodes Incorporated 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 Diodes Incorporated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Diodes Incorporated has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and Diodes Incorporated go up and down completely randomly.
Pair Corralation between Aegean Airlines and Diodes Incorporated
Assuming the 90 days horizon Aegean Airlines SA is expected to under-perform the Diodes Incorporated. But the pink sheet apears to be less risky and, when comparing its historical volatility, Aegean Airlines SA is 1.68 times less risky than Diodes Incorporated. The pink sheet trades about -0.22 of its potential returns per unit of risk. The Diodes Incorporated is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 6,350 in Diodes Incorporated on August 28, 2024 and sell it today you would earn a total of 280.00 from holding Diodes Incorporated or generate 4.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aegean Airlines SA vs. Diodes Incorporated
Performance |
| Timeline |
| Aegean Airlines SA |
| Diodes Incorporated |
Aegean Airlines and Diodes Incorporated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and Diodes Incorporated
The main advantage of trading using opposite Aegean Airlines and Diodes Incorporated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, Diodes Incorporated 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 Diodes Incorporated will offset losses from the drop in Diodes Incorporated'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 |
| Diodes Incorporated vs. Silicon Laboratories | Diodes Incorporated vs. MACOM Technology Solutions | Diodes Incorporated vs. FormFactor | Diodes Incorporated vs. Amkor Technology |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |