Correlation Between Aegean Airlines and Enersys
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and Enersys 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 Enersys 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 Enersys, you can compare the effects of market volatilities on Aegean Airlines and Enersys 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 Enersys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and Enersys.
Diversification Opportunities for Aegean Airlines and Enersys
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aegean and Enersys is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and Enersys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enersys 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 Enersys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enersys has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and Enersys go up and down completely randomly.
Pair Corralation between Aegean Airlines and Enersys
Assuming the 90 days horizon Aegean Airlines SA is expected to under-perform the Enersys. But the pink sheet apears to be less risky and, when comparing its historical volatility, Aegean Airlines SA is 1.12 times less risky than Enersys. The pink sheet trades about -0.05 of its potential returns per unit of risk. The Enersys is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 9,191 in Enersys on September 4, 2024 and sell it today you would earn a total of 457.00 from holding Enersys or generate 4.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Aegean Airlines SA vs. Enersys
Performance |
| Timeline |
| Aegean Airlines SA |
| Enersys |
Aegean Airlines and Enersys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and Enersys
The main advantage of trading using opposite Aegean Airlines and Enersys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, Enersys 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 Enersys will offset losses from the drop in Enersys' long position.| Aegean Airlines vs. Apple Inc | Aegean Airlines vs. Microsoft | Aegean Airlines vs. Amazon Inc | Aegean Airlines vs. Alphabet Inc Class C |
| Enersys vs. Advanced Energy Industries | Enersys vs. Hubbell | Enersys vs. Acuity Brands | Enersys vs. Kimball Electronics |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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