Correlation Between Aegean Airlines and Kite Realty
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and Kite 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 Kite 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 Kite Realty Group, you can compare the effects of market volatilities on Aegean Airlines and Kite 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 Kite Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and Kite Realty.
Diversification Opportunities for Aegean Airlines and Kite Realty
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aegean and Kite is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and Kite Realty Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kite Realty Group 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 Kite Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kite Realty Group has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and Kite Realty go up and down completely randomly.
Pair Corralation between Aegean Airlines and Kite Realty
If you would invest 1,025 in Aegean Airlines SA on November 29, 2024 and sell it today you would earn a total of 0.00 from holding Aegean Airlines SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Aegean Airlines SA vs. Kite Realty Group
Performance |
| Timeline |
| Aegean Airlines SA |
| Kite Realty Group |
Aegean Airlines and Kite Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and Kite Realty
The main advantage of trading using opposite Aegean Airlines and Kite Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, Kite 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 Kite Realty will offset losses from the drop in Kite Realty'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 |
| Kite Realty vs. Site Centers Corp | Kite Realty vs. CBL Associates Properties | Kite Realty vs. Urban Edge Properties | Kite Realty vs. Acadia Realty Trust |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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