Correlation Between Aegean Airlines and MACOM Technology
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and MACOM Technology 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 MACOM Technology 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 MACOM Technology Solutions, you can compare the effects of market volatilities on Aegean Airlines and MACOM Technology 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 MACOM Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and MACOM Technology.
Diversification Opportunities for Aegean Airlines and MACOM Technology
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aegean and MACOM is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and MACOM Technology Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MACOM Technology Sol 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 MACOM Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MACOM Technology Sol has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and MACOM Technology go up and down completely randomly.
Pair Corralation between Aegean Airlines and MACOM Technology
Assuming the 90 days horizon Aegean Airlines SA is expected to under-perform the MACOM Technology. But the pink sheet apears to be less risky and, when comparing its historical volatility, Aegean Airlines SA is 1.65 times less risky than MACOM Technology. The pink sheet trades about -0.22 of its potential returns per unit of risk. The MACOM Technology Solutions is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 11,754 in MACOM Technology Solutions on August 28, 2024 and sell it today you would earn a total of 1,783 from holding MACOM Technology Solutions or generate 15.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aegean Airlines SA vs. MACOM Technology Solutions
Performance |
| Timeline |
| Aegean Airlines SA |
| MACOM Technology Sol |
Aegean Airlines and MACOM Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and MACOM Technology
The main advantage of trading using opposite Aegean Airlines and MACOM Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, MACOM Technology 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 MACOM Technology will offset losses from the drop in MACOM Technology'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 |
| MACOM Technology vs. Power Integrations | MACOM Technology vs. Diodes Incorporated | MACOM Technology vs. Cirrus Logic | MACOM Technology vs. Amkor Technology |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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