Correlation Between Aegean Airlines and Lemonade
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and Lemonade 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 Lemonade 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 Lemonade, you can compare the effects of market volatilities on Aegean Airlines and Lemonade 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 Lemonade. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and Lemonade.
Diversification Opportunities for Aegean Airlines and Lemonade
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aegean and Lemonade is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and Lemonade in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lemonade 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 Lemonade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lemonade has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and Lemonade go up and down completely randomly.
Pair Corralation between Aegean Airlines and Lemonade
Assuming the 90 days horizon Aegean Airlines SA is expected to under-perform the Lemonade. But the pink sheet apears to be less risky and, when comparing its historical volatility, Aegean Airlines SA is 3.96 times less risky than Lemonade. The pink sheet trades about -0.22 of its potential returns per unit of risk. The Lemonade is currently generating about 0.58 of returns per unit of risk over similar time horizon. If you would invest 1,864 in Lemonade on August 28, 2024 and sell it today you would earn a total of 3,238 from holding Lemonade or generate 173.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aegean Airlines SA vs. Lemonade
Performance |
| Timeline |
| Aegean Airlines SA |
| Lemonade |
Aegean Airlines and Lemonade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and Lemonade
The main advantage of trading using opposite Aegean Airlines and Lemonade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, Lemonade 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 Lemonade will offset losses from the drop in Lemonade'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 |
| Lemonade vs. Fiverr International | Lemonade vs. Pinterest | Lemonade vs. Upstart Holdings | Lemonade vs. Fastly 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 CEOs Directory module to screen CEOs from public companies around the world.
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