Correlation Between Aegean Airlines and T Mobile
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and T Mobile 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 T Mobile 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 T Mobile, you can compare the effects of market volatilities on Aegean Airlines and T Mobile 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 T Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and T Mobile.
Diversification Opportunities for Aegean Airlines and T Mobile
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aegean and TMUS is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and T Mobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on T Mobile 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 T Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of T Mobile has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and T Mobile go up and down completely randomly.
Pair Corralation between Aegean Airlines and T Mobile
Assuming the 90 days horizon Aegean Airlines SA is expected to generate 2.11 times more return on investment than T Mobile. However, Aegean Airlines is 2.11 times more volatile than T Mobile. It trades about 0.07 of its potential returns per unit of risk. T Mobile is currently generating about 0.1 per unit of risk. If you would invest 532.00 in Aegean Airlines SA on August 28, 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aegean Airlines SA vs. T Mobile
Performance |
| Timeline |
| Aegean Airlines SA |
| T Mobile |
Aegean Airlines and T Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and T Mobile
The main advantage of trading using opposite Aegean Airlines and T Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, T Mobile 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 T Mobile will offset losses from the drop in T Mobile'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 |
| T Mobile vs. ATT Inc | T Mobile vs. Comcast Corp | T Mobile vs. Lumen Technologies | T Mobile vs. Verizon Communications |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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