Correlation Between Aegean Airlines and Toshiba
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and Toshiba 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 Toshiba 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 Toshiba, you can compare the effects of market volatilities on Aegean Airlines and Toshiba 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 Toshiba. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and Toshiba.
Diversification Opportunities for Aegean Airlines and Toshiba
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aegean and Toshiba is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and Toshiba in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Toshiba 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 Toshiba. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Toshiba has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and Toshiba go up and down completely randomly.
Pair Corralation between Aegean Airlines and Toshiba
If you would invest (100.00) in Toshiba on November 27, 2024 and sell it today you would earn a total of 100.00 from holding Toshiba or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Aegean Airlines SA vs. Toshiba
Performance |
| Timeline |
| Aegean Airlines SA |
| Toshiba |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Aegean Airlines and Toshiba Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and Toshiba
The main advantage of trading using opposite Aegean Airlines and Toshiba positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, Toshiba 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 Toshiba will offset losses from the drop in Toshiba'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 |
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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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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