Correlation Between Aegean Airlines and SemiLEDS
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and SemiLEDS 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 SemiLEDS 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 SemiLEDS, you can compare the effects of market volatilities on Aegean Airlines and SemiLEDS 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 SemiLEDS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and SemiLEDS.
Diversification Opportunities for Aegean Airlines and SemiLEDS
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aegean and SemiLEDS is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and SemiLEDS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SemiLEDS 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 SemiLEDS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SemiLEDS has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and SemiLEDS go up and down completely randomly.
Pair Corralation between Aegean Airlines and SemiLEDS
Assuming the 90 days horizon Aegean Airlines SA is expected to under-perform the SemiLEDS. But the pink sheet apears to be less risky and, when comparing its historical volatility, Aegean Airlines SA is 4.21 times less risky than SemiLEDS. The pink sheet trades about -0.22 of its potential returns per unit of risk. The SemiLEDS is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 123.00 in SemiLEDS on August 28, 2024 and sell it today you would earn a total of 5.00 from holding SemiLEDS or generate 4.07% 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. SemiLEDS
Performance |
| Timeline |
| Aegean Airlines SA |
| SemiLEDS |
Aegean Airlines and SemiLEDS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and SemiLEDS
The main advantage of trading using opposite Aegean Airlines and SemiLEDS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, SemiLEDS 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 SemiLEDS will offset losses from the drop in SemiLEDS'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 |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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