Correlation Between Aegean Airlines and Nasdaq
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and Nasdaq 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 Nasdaq 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 Nasdaq Inc, you can compare the effects of market volatilities on Aegean Airlines and Nasdaq 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 Nasdaq. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and Nasdaq.
Diversification Opportunities for Aegean Airlines and Nasdaq
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aegean and Nasdaq is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and Nasdaq Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nasdaq Inc 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 Nasdaq. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nasdaq Inc has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and Nasdaq go up and down completely randomly.
Pair Corralation between Aegean Airlines and Nasdaq
Assuming the 90 days horizon Aegean Airlines SA is expected to under-perform the Nasdaq. In addition to that, Aegean Airlines is 2.21 times more volatile than Nasdaq Inc. It trades about -0.22 of its total potential returns per unit of risk. Nasdaq Inc is currently generating about 0.43 per unit of volatility. If you would invest 7,481 in Nasdaq Inc on September 3, 2024 and sell it today you would earn a total of 684.00 from holding Nasdaq Inc or generate 9.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Aegean Airlines SA vs. Nasdaq Inc
Performance |
| Timeline |
| Aegean Airlines SA |
| Nasdaq Inc |
Aegean Airlines and Nasdaq Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and Nasdaq
The main advantage of trading using opposite Aegean Airlines and Nasdaq positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, Nasdaq 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 Nasdaq will offset losses from the drop in Nasdaq'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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |