Correlation Between Aegean Airlines and Sonida Senior
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and Sonida Senior 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 Sonida Senior 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 Sonida Senior Living, you can compare the effects of market volatilities on Aegean Airlines and Sonida Senior 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 Sonida Senior. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and Sonida Senior.
Diversification Opportunities for Aegean Airlines and Sonida Senior
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Aegean and Sonida is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and Sonida Senior Living in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sonida Senior Living 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 Sonida Senior. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sonida Senior Living has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and Sonida Senior go up and down completely randomly.
Pair Corralation between Aegean Airlines and Sonida Senior
Assuming the 90 days horizon Aegean Airlines is expected to generate 19.13 times less return on investment than Sonida Senior. But when comparing it to its historical volatility, Aegean Airlines SA is 2.51 times less risky than Sonida Senior. It trades about 0.01 of its potential returns per unit of risk. Sonida Senior Living is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 946.00 in Sonida Senior Living on September 12, 2024 and sell it today you would earn a total of 1,596 from holding Sonida Senior Living or generate 168.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.43% |
| Values | Daily Returns |
Aegean Airlines SA vs. Sonida Senior Living
Performance |
| Timeline |
| Aegean Airlines SA |
| Sonida Senior Living |
Aegean Airlines and Sonida Senior Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and Sonida Senior
The main advantage of trading using opposite Aegean Airlines and Sonida Senior positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, Sonida Senior 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 Sonida Senior will offset losses from the drop in Sonida Senior'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 |
| Sonida Senior vs. Select Medical Holdings | Sonida Senior vs. Encompass Health Corp | Sonida Senior vs. Pennant Group | Sonida Senior vs. InnovAge Holding Corp |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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