Correlation Between Aegean Airlines and Himax Technologies
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and Himax Technologies 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 Himax Technologies 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 Himax Technologies, you can compare the effects of market volatilities on Aegean Airlines and Himax Technologies 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 Himax Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and Himax Technologies.
Diversification Opportunities for Aegean Airlines and Himax Technologies
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Aegean and Himax is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and Himax Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Himax Technologies 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 Himax Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Himax Technologies has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and Himax Technologies go up and down completely randomly.
Pair Corralation between Aegean Airlines and Himax Technologies
Assuming the 90 days horizon Aegean Airlines SA is expected to under-perform the Himax Technologies. But the pink sheet apears to be less risky and, when comparing its historical volatility, Aegean Airlines SA is 1.7 times less risky than Himax Technologies. The pink sheet trades about -0.05 of its potential returns per unit of risk. The Himax Technologies is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 570.00 in Himax Technologies on August 24, 2024 and sell it today you would lose (44.00) from holding Himax Technologies or give up 7.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Aegean Airlines SA vs. Himax Technologies
Performance |
| Timeline |
| Aegean Airlines SA |
| Himax Technologies |
Aegean Airlines and Himax Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and Himax Technologies
The main advantage of trading using opposite Aegean Airlines and Himax Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, Himax Technologies 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 Himax Technologies will offset losses from the drop in Himax Technologies' long position.| Aegean Airlines vs. Copa Holdings SA | Aegean Airlines vs. United Airlines Holdings | Aegean Airlines vs. Delta Air Lines | Aegean Airlines vs. SkyWest |
| Himax Technologies vs. Eshallgo Class A | Himax Technologies vs. Amtech Systems | Himax Technologies vs. Gold Fields Ltd | Himax Technologies vs. Aegean Airlines SA |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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