Correlation Between Aegean Airlines and Getty Images
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and Getty Images 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 Getty Images 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 Getty Images Holdings, you can compare the effects of market volatilities on Aegean Airlines and Getty Images 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 Getty Images. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and Getty Images.
Diversification Opportunities for Aegean Airlines and Getty Images
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aegean and Getty is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and Getty Images Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getty Images Holdings 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 Getty Images. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Getty Images Holdings has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and Getty Images go up and down completely randomly.
Pair Corralation between Aegean Airlines and Getty Images
Assuming the 90 days horizon Aegean Airlines SA is expected to generate 0.43 times more return on investment than Getty Images. However, Aegean Airlines SA is 2.34 times less risky than Getty Images. It trades about -0.21 of its potential returns per unit of risk. Getty Images Holdings is currently generating about -0.23 per unit of risk. If you would invest 1,213 in Aegean Airlines SA on August 30, 2024 and sell it today you would lose (128.00) from holding Aegean Airlines SA or give up 10.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Aegean Airlines SA vs. Getty Images Holdings
Performance |
| Timeline |
| Aegean Airlines SA |
| Getty Images Holdings |
Aegean Airlines and Getty Images Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and Getty Images
The main advantage of trading using opposite Aegean Airlines and Getty Images positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, Getty Images 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 Getty Images will offset losses from the drop in Getty Images' long position.| Aegean Airlines vs. Copa Holdings SA | Aegean Airlines vs. United Airlines Holdings | Aegean Airlines vs. Delta Air Lines | Aegean Airlines vs. SkyWest |
| Getty Images vs. Twilio Inc | Getty Images vs. Baidu Inc | Getty Images vs. Snap Inc | Getty Images vs. ANGI Homeservices |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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