Correlation Between Aegean Airlines and YPF Sociedad
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and YPF Sociedad 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 YPF Sociedad 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 YPF Sociedad Anonima, you can compare the effects of market volatilities on Aegean Airlines and YPF Sociedad 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 YPF Sociedad. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and YPF Sociedad.
Diversification Opportunities for Aegean Airlines and YPF Sociedad
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aegean and YPF is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and YPF Sociedad Anonima in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YPF Sociedad Anonima 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 YPF Sociedad. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YPF Sociedad Anonima has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and YPF Sociedad go up and down completely randomly.
Pair Corralation between Aegean Airlines and YPF Sociedad
Assuming the 90 days horizon Aegean Airlines SA is expected to under-perform the YPF Sociedad. But the pink sheet apears to be less risky and, when comparing its historical volatility, Aegean Airlines SA is 1.22 times less risky than YPF Sociedad. The pink sheet trades about -0.22 of its potential returns per unit of risk. The YPF Sociedad Anonima is currently generating about 0.75 of returns per unit of risk over similar time horizon. If you would invest 2,551 in YPF Sociedad Anonima on August 28, 2024 and sell it today you would earn a total of 1,375 from holding YPF Sociedad Anonima or generate 53.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aegean Airlines SA vs. YPF Sociedad Anonima
Performance |
| Timeline |
| Aegean Airlines SA |
| YPF Sociedad Anonima |
Aegean Airlines and YPF Sociedad Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aegean Airlines and YPF Sociedad
The main advantage of trading using opposite Aegean Airlines and YPF Sociedad positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, YPF Sociedad 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 YPF Sociedad will offset losses from the drop in YPF Sociedad'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 |
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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