Correlation Between Aegean Airlines and National CineMedia
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and National CineMedia 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 National CineMedia 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 National CineMedia, you can compare the effects of market volatilities on Aegean Airlines and National CineMedia 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 National CineMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and National CineMedia.
Diversification Opportunities for Aegean Airlines and National CineMedia
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Aegean and National is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and National CineMedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National CineMedia 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 National CineMedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National CineMedia has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and National CineMedia go up and down completely randomly.
Pair Corralation between Aegean Airlines and National CineMedia
Assuming the 90 days horizon Aegean Airlines SA is expected to under-perform the National CineMedia. But the pink sheet apears to be less risky and, when comparing its historical volatility, Aegean Airlines SA is 1.3 times less risky than National CineMedia. The pink sheet trades about -0.21 of its potential returns per unit of risk. The National CineMedia is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 717.00 in National CineMedia on August 30, 2024 and sell it today you would lose (31.00) from holding National CineMedia or give up 4.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Aegean Airlines SA vs. National CineMedia
Performance |
| Timeline |
| Aegean Airlines SA |
| National CineMedia |
Aegean Airlines and National CineMedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and National CineMedia
The main advantage of trading using opposite Aegean Airlines and National CineMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, National CineMedia 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 National CineMedia will offset losses from the drop in National CineMedia'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 |
| National CineMedia vs. Mirriad Advertising plc | National CineMedia vs. INEO Tech Corp | National CineMedia vs. Kidoz Inc | National CineMedia vs. Marchex |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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