Correlation Between Aegean Airlines and Viemed Healthcare
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and Viemed Healthcare 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 Viemed Healthcare 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 Viemed Healthcare, you can compare the effects of market volatilities on Aegean Airlines and Viemed Healthcare 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 Viemed Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and Viemed Healthcare.
Diversification Opportunities for Aegean Airlines and Viemed Healthcare
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aegean and Viemed is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and Viemed Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viemed Healthcare 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 Viemed Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viemed Healthcare has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and Viemed Healthcare go up and down completely randomly.
Pair Corralation between Aegean Airlines and Viemed Healthcare
If you would invest 1,085 in Aegean Airlines SA on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Aegean Airlines SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aegean Airlines SA vs. Viemed Healthcare
Performance |
| Timeline |
| Aegean Airlines SA |
| Viemed Healthcare |
Aegean Airlines and Viemed Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and Viemed Healthcare
The main advantage of trading using opposite Aegean Airlines and Viemed Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, Viemed Healthcare 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 Viemed Healthcare will offset losses from the drop in Viemed Healthcare'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 |
| Viemed Healthcare vs. Profound Medical Corp | Viemed Healthcare vs. Si Bone | Viemed Healthcare vs. IRIDEX | Viemed Healthcare vs. SurModics |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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