Correlation Between Aegean Airlines and Eshallgo
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and Eshallgo 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 Eshallgo 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 Eshallgo Class A, you can compare the effects of market volatilities on Aegean Airlines and Eshallgo 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 Eshallgo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and Eshallgo.
Diversification Opportunities for Aegean Airlines and Eshallgo
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aegean and Eshallgo is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and Eshallgo Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eshallgo Class A 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 Eshallgo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eshallgo Class A has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and Eshallgo go up and down completely randomly.
Pair Corralation between Aegean Airlines and Eshallgo
Assuming the 90 days horizon Aegean Airlines SA is expected to under-perform the Eshallgo. But the pink sheet apears to be less risky and, when comparing its historical volatility, Aegean Airlines SA is 3.65 times less risky than Eshallgo. The pink sheet trades about -0.22 of its potential returns per unit of risk. The Eshallgo Class A is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 236.00 in Eshallgo Class A on August 28, 2024 and sell it today you would earn a total of 156.00 from holding Eshallgo Class A or generate 66.1% 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. Eshallgo Class A
Performance |
| Timeline |
| Aegean Airlines SA |
| Eshallgo Class A |
Aegean Airlines and Eshallgo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and Eshallgo
The main advantage of trading using opposite Aegean Airlines and Eshallgo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, Eshallgo 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 Eshallgo will offset losses from the drop in Eshallgo'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 |
| Eshallgo vs. Lululemon Athletica | Eshallgo vs. Asbury Automotive Group | Eshallgo vs. SunLink Health Systems | Eshallgo vs. Simon Property 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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