Correlation Between Aegean Airlines and Horizon Space
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and Horizon Space 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 Horizon Space 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 Horizon Space Acquisition, you can compare the effects of market volatilities on Aegean Airlines and Horizon Space 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 Horizon Space. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and Horizon Space.
Diversification Opportunities for Aegean Airlines and Horizon Space
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Aegean and Horizon is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and Horizon Space Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Horizon Space Acquisition 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 Horizon Space. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Horizon Space Acquisition has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and Horizon Space go up and down completely randomly.
Pair Corralation between Aegean Airlines and Horizon Space
If you would invest 1.89 in Horizon Space Acquisition on October 21, 2024 and sell it today you would lose (0.75) from holding Horizon Space Acquisition or give up 39.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 52.38% |
| Values | Daily Returns |
Aegean Airlines SA vs. Horizon Space Acquisition
Performance |
| Timeline |
| Aegean Airlines SA |
| Horizon Space Acquisition |
Aegean Airlines and Horizon Space Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and Horizon Space
The main advantage of trading using opposite Aegean Airlines and Horizon Space positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, Horizon Space 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 Horizon Space will offset losses from the drop in Horizon Space'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 |
| Horizon Space vs. SohuCom | Horizon Space vs. Futuretech II Acquisition | Horizon Space vs. Roblox Corp | Horizon Space vs. Western Acquisition Ventures |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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