Correlation Between Aegean Airlines and Gold Fields
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and Gold Fields 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 Gold Fields 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 Gold Fields Ltd, you can compare the effects of market volatilities on Aegean Airlines and Gold Fields 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 Gold Fields. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and Gold Fields.
Diversification Opportunities for Aegean Airlines and Gold Fields
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aegean and Gold is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and Gold Fields Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gold Fields 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 Gold Fields. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gold Fields has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and Gold Fields go up and down completely randomly.
Pair Corralation between Aegean Airlines and Gold Fields
If you would invest 1,529 in Gold Fields Ltd on November 18, 2024 and sell it today you would earn a total of 358.00 from holding Gold Fields Ltd or generate 23.41% 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. Gold Fields Ltd
Performance |
Timeline |
Aegean Airlines SA |
Gold Fields |
Aegean Airlines and Gold Fields Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aegean Airlines and Gold Fields
The main advantage of trading using opposite Aegean Airlines and Gold Fields positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, Gold Fields 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 Gold Fields will offset losses from the drop in Gold Fields' long position.Aegean Airlines vs. Copa Holdings SA | Aegean Airlines vs. United Airlines Holdings | Aegean Airlines vs. Delta Air Lines | Aegean Airlines vs. SkyWest |
Gold Fields vs. Agnico Eagle Mines | Gold Fields vs. Kinross Gold | Gold Fields vs. Harmony Gold Mining | Gold Fields vs. Franco Nevada |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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