Correlation Between Aegean Airlines and Hawkins
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and Hawkins 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 Hawkins 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 Hawkins, you can compare the effects of market volatilities on Aegean Airlines and Hawkins 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 Hawkins. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and Hawkins.
Diversification Opportunities for Aegean Airlines and Hawkins
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aegean and Hawkins is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and Hawkins in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hawkins 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 Hawkins. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hawkins has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and Hawkins go up and down completely randomly.
Pair Corralation between Aegean Airlines and Hawkins
Assuming the 90 days horizon Aegean Airlines is expected to generate 1.62 times less return on investment than Hawkins. In addition to that, Aegean Airlines is 1.0 times more volatile than Hawkins. It trades about 0.07 of its total potential returns per unit of risk. Hawkins is currently generating about 0.12 per unit of volatility. If you would invest 4,004 in Hawkins on August 28, 2024 and sell it today you would earn a total of 9,543 from holding Hawkins or generate 238.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aegean Airlines SA vs. Hawkins
Performance |
| Timeline |
| Aegean Airlines SA |
| Hawkins |
Aegean Airlines and Hawkins Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and Hawkins
The main advantage of trading using opposite Aegean Airlines and Hawkins positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, Hawkins 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 Hawkins will offset losses from the drop in Hawkins' long position.| Aegean Airlines vs. Copa Holdings SA | Aegean Airlines vs. United Airlines Holdings | Aegean Airlines vs. Delta Air Lines | Aegean Airlines vs. SkyWest |
| Hawkins vs. H B Fuller | Hawkins vs. Minerals Technologies | Hawkins vs. Quaker Chemical | Hawkins vs. Oil Dri |
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 Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |