Correlation Between Aegean Airlines and Reservoir Media
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and Reservoir Media 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 Reservoir Media 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 Reservoir Media, you can compare the effects of market volatilities on Aegean Airlines and Reservoir Media 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 Reservoir Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and Reservoir Media.
Diversification Opportunities for Aegean Airlines and Reservoir Media
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aegean and Reservoir is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and Reservoir Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reservoir Media 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 Reservoir Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reservoir Media has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and Reservoir Media go up and down completely randomly.
Pair Corralation between Aegean Airlines and Reservoir Media
If you would invest 911.00 in Reservoir Media on September 12, 2024 and sell it today you would earn a total of 35.00 from holding Reservoir Media or generate 3.84% 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. Reservoir Media
Performance |
| Timeline |
| Aegean Airlines SA |
| Reservoir Media |
Aegean Airlines and Reservoir Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and Reservoir Media
The main advantage of trading using opposite Aegean Airlines and Reservoir Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, Reservoir Media 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 Reservoir Media will offset losses from the drop in Reservoir Media'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 |
| Reservoir Media vs. Reading International | Reservoir Media vs. Marcus | Reservoir Media vs. Gaia Inc | Reservoir Media vs. News Corp B |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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