Correlation Between Aegean Airlines and Dalata Hotel
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and Dalata Hotel 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 Dalata Hotel 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 Dalata Hotel Group, you can compare the effects of market volatilities on Aegean Airlines and Dalata Hotel 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 Dalata Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and Dalata Hotel.
Diversification Opportunities for Aegean Airlines and Dalata Hotel
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aegean and Dalata is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and Dalata Hotel Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dalata Hotel Group 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 Dalata Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dalata Hotel Group has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and Dalata Hotel go up and down completely randomly.
Pair Corralation between Aegean Airlines and Dalata Hotel
If you would invest 488.00 in Dalata Hotel Group on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Dalata Hotel Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Aegean Airlines SA vs. Dalata Hotel Group
Performance |
| Timeline |
| Aegean Airlines SA |
| Dalata Hotel Group |
Aegean Airlines and Dalata Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and Dalata Hotel
The main advantage of trading using opposite Aegean Airlines and Dalata Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, Dalata Hotel 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 Dalata Hotel will offset losses from the drop in Dalata Hotel's long position.| Aegean Airlines vs. Legacy Education | Aegean Airlines vs. Apple Inc | Aegean Airlines vs. NVIDIA | Aegean Airlines vs. Microsoft |
| Dalata Hotel vs. Legacy Education | Dalata Hotel vs. Apple Inc | Dalata Hotel vs. NVIDIA | Dalata Hotel vs. Microsoft |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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