Correlation Between Aegean Airlines and Triton International
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and Triton International 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 Triton International 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 Triton International Limited, you can compare the effects of market volatilities on Aegean Airlines and Triton International 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 Triton International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and Triton International.
Diversification Opportunities for Aegean Airlines and Triton International
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Aegean and Triton is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and Triton International Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triton International 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 Triton International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triton International has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and Triton International go up and down completely randomly.
Pair Corralation between Aegean Airlines and Triton International
Assuming the 90 days horizon Aegean Airlines SA is expected to under-perform the Triton International. In addition to that, Aegean Airlines is 2.28 times more volatile than Triton International Limited. It trades about -0.05 of its total potential returns per unit of risk. Triton International Limited is currently generating about 0.05 per unit of volatility. If you would invest 2,367 in Triton International Limited on September 1, 2024 and sell it today you would earn a total of 173.00 from holding Triton International Limited or generate 7.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.52% |
| Values | Daily Returns |
Aegean Airlines SA vs. Triton International Limited
Performance |
| Timeline |
| Aegean Airlines SA |
| Triton International |
Aegean Airlines and Triton International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and Triton International
The main advantage of trading using opposite Aegean Airlines and Triton International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, Triton International 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 Triton International will offset losses from the drop in Triton International's long position.| Aegean Airlines vs. Legacy Education | Aegean Airlines vs. Apple Inc | Aegean Airlines vs. NVIDIA | Aegean Airlines vs. Microsoft |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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