Correlation Between Aegean Airlines and PS Business
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and PS Business 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 PS Business 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 PS Business Parks, you can compare the effects of market volatilities on Aegean Airlines and PS Business 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 PS Business. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and PS Business.
Diversification Opportunities for Aegean Airlines and PS Business
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aegean and PSBYP is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and PS Business Parks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PS Business Parks 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 PS Business. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PS Business Parks has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and PS Business go up and down completely randomly.
Pair Corralation between Aegean Airlines and PS Business
Assuming the 90 days horizon Aegean Airlines SA is expected to generate 0.64 times more return on investment than PS Business. However, Aegean Airlines SA is 1.57 times less risky than PS Business. It trades about 0.07 of its potential returns per unit of risk. PS Business Parks is currently generating about 0.0 per unit of risk. If you would invest 532.00 in Aegean Airlines SA on September 1, 2024 and sell it today you would earn a total of 553.00 from holding Aegean Airlines SA or generate 103.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 30.85% |
| Values | Daily Returns |
Aegean Airlines SA vs. PS Business Parks
Performance |
| Timeline |
| Aegean Airlines SA |
| PS Business Parks |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Aegean Airlines and PS Business Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and PS Business
The main advantage of trading using opposite Aegean Airlines and PS Business positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, PS Business 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 PS Business will offset losses from the drop in PS Business' long position.| Aegean Airlines vs. Legacy Education | Aegean Airlines vs. Apple Inc | Aegean Airlines vs. NVIDIA | Aegean Airlines vs. Microsoft |
| PS Business vs. Allegiant Travel | PS Business vs. Aegean Airlines SA | PS Business vs. Constellation Brands Class | PS Business vs. Oatly Group AB |
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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