Correlation Between Aegean Airlines and Natural Alternatives
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and Natural Alternatives 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 Natural Alternatives 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 Natural Alternatives International, you can compare the effects of market volatilities on Aegean Airlines and Natural Alternatives 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 Natural Alternatives. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and Natural Alternatives.
Diversification Opportunities for Aegean Airlines and Natural Alternatives
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aegean and Natural is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and Natural Alternatives Internati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natural Alternatives 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 Natural Alternatives. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natural Alternatives has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and Natural Alternatives go up and down completely randomly.
Pair Corralation between Aegean Airlines and Natural Alternatives
Assuming the 90 days horizon Aegean Airlines SA is expected to under-perform the Natural Alternatives. But the pink sheet apears to be less risky and, when comparing its historical volatility, Aegean Airlines SA is 2.14 times less risky than Natural Alternatives. The pink sheet trades about -0.12 of its potential returns per unit of risk. The Natural Alternatives International is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 650.00 in Natural Alternatives International on September 3, 2024 and sell it today you would lose (181.00) from holding Natural Alternatives International or give up 27.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Aegean Airlines SA vs. Natural Alternatives Internati
Performance |
| Timeline |
| Aegean Airlines SA |
| Natural Alternatives |
Aegean Airlines and Natural Alternatives Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and Natural Alternatives
The main advantage of trading using opposite Aegean Airlines and Natural Alternatives positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, Natural Alternatives 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 Natural Alternatives will offset losses from the drop in Natural Alternatives' long position.| Aegean Airlines vs. Copa Holdings SA | Aegean Airlines vs. United Airlines Holdings | Aegean Airlines vs. Delta Air Lines | Aegean Airlines vs. SkyWest |
| Natural Alternatives vs. FitLife Brands, Common | Natural Alternatives vs. Lifeway Foods | Natural Alternatives vs. Else Nutrition Holdings | Natural Alternatives vs. Central Garden Pet |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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