Correlation Between Aegean Airlines and ChipMOS Technologies
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and ChipMOS 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 ChipMOS 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 ChipMOS Technologies, you can compare the effects of market volatilities on Aegean Airlines and ChipMOS 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 ChipMOS Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and ChipMOS Technologies.
Diversification Opportunities for Aegean Airlines and ChipMOS Technologies
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aegean and ChipMOS is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and ChipMOS Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ChipMOS 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 ChipMOS Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ChipMOS Technologies has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and ChipMOS Technologies go up and down completely randomly.
Pair Corralation between Aegean Airlines and ChipMOS Technologies
Assuming the 90 days horizon Aegean Airlines SA is expected to under-perform the ChipMOS Technologies. But the pink sheet apears to be less risky and, when comparing its historical volatility, Aegean Airlines SA is 1.16 times less risky than ChipMOS Technologies. The pink sheet trades about -0.05 of its potential returns per unit of risk. The ChipMOS Technologies is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 2,442 in ChipMOS Technologies on August 24, 2024 and sell it today you would lose (502.00) from holding ChipMOS Technologies or give up 20.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.6% |
| Values | Daily Returns |
Aegean Airlines SA vs. ChipMOS Technologies
Performance |
| Timeline |
| Aegean Airlines SA |
| ChipMOS Technologies |
Aegean Airlines and ChipMOS Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and ChipMOS Technologies
The main advantage of trading using opposite Aegean Airlines and ChipMOS Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, ChipMOS 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 ChipMOS Technologies will offset losses from the drop in ChipMOS 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 |
| ChipMOS Technologies vs. Eshallgo Class A | ChipMOS Technologies vs. Amtech Systems | ChipMOS Technologies vs. Gold Fields Ltd | ChipMOS 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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