Correlation Between Aegean Airlines and Sonos
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and Sonos 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 Sonos 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 Sonos Inc, you can compare the effects of market volatilities on Aegean Airlines and Sonos 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 Sonos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and Sonos.
Diversification Opportunities for Aegean Airlines and Sonos
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aegean and Sonos is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and Sonos Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sonos 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 Sonos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sonos Inc has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and Sonos go up and down completely randomly.
Pair Corralation between Aegean Airlines and Sonos
Assuming the 90 days horizon Aegean Airlines SA is expected to under-perform the Sonos. But the pink sheet apears to be less risky and, when comparing its historical volatility, Aegean Airlines SA is 1.97 times less risky than Sonos. The pink sheet trades about -0.04 of its potential returns per unit of risk. The Sonos Inc is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,350 in Sonos Inc on August 27, 2024 and sell it today you would lose (1.00) from holding Sonos Inc or give up 0.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aegean Airlines SA vs. Sonos Inc
Performance |
| Timeline |
| Aegean Airlines SA |
| Sonos Inc |
Aegean Airlines and Sonos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and Sonos
The main advantage of trading using opposite Aegean Airlines and Sonos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, Sonos 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 Sonos will offset losses from the drop in Sonos' long position.| Aegean Airlines vs. Copa Holdings SA | Aegean Airlines vs. United Airlines Holdings | Aegean Airlines vs. Delta Air Lines | Aegean Airlines vs. SkyWest |
| Sonos vs. VOXX International | Sonos vs. LG Display Co | Sonos vs. Vizio Holding Corp | Sonos vs. Wearable Devices |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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