Correlation Between Aegean Airlines and Independence Realty
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and Independence Realty 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 Independence Realty 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 Independence Realty Trust, you can compare the effects of market volatilities on Aegean Airlines and Independence Realty 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 Independence Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and Independence Realty.
Diversification Opportunities for Aegean Airlines and Independence Realty
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aegean and Independence is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and Independence Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Independence Realty Trust 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 Independence Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Independence Realty Trust has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and Independence Realty go up and down completely randomly.
Pair Corralation between Aegean Airlines and Independence Realty
Assuming the 90 days horizon Aegean Airlines SA is expected to under-perform the Independence Realty. In addition to that, Aegean Airlines is 1.96 times more volatile than Independence Realty Trust. It trades about -0.21 of its total potential returns per unit of risk. Independence Realty Trust is currently generating about 0.57 per unit of volatility. If you would invest 1,906 in Independence Realty Trust on September 2, 2024 and sell it today you would earn a total of 278.00 from holding Independence Realty Trust or generate 14.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Aegean Airlines SA vs. Independence Realty Trust
Performance |
| Timeline |
| Aegean Airlines SA |
| Independence Realty Trust |
Aegean Airlines and Independence Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and Independence Realty
The main advantage of trading using opposite Aegean Airlines and Independence Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, Independence Realty 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 Independence Realty will offset losses from the drop in Independence Realty's long position.| Aegean Airlines vs. Legacy Education | Aegean Airlines vs. Apple Inc | Aegean Airlines vs. NVIDIA | Aegean Airlines vs. Microsoft |
| Independence Realty vs. Apartment Investment and | Independence Realty vs. Clipper Realty | Independence Realty vs. BRT Realty Trust | Independence Realty vs. UDR Inc |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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