Correlation Between Aldel Financial and Aegean Airlines
Can any of the company-specific risk be diversified away by investing in both Aldel Financial and Aegean Airlines 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 Aldel Financial and Aegean Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aldel Financial II and Aegean Airlines SA, you can compare the effects of market volatilities on Aldel Financial and Aegean Airlines 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 Aldel Financial with a short position of Aegean Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aldel Financial and Aegean Airlines.
Diversification Opportunities for Aldel Financial and Aegean Airlines
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aldel and Aegean is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Aldel Financial II and Aegean Airlines SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aegean Airlines SA and Aldel Financial 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 Aldel Financial II are associated (or correlated) with Aegean Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aegean Airlines SA has no effect on the direction of Aldel Financial i.e., Aldel Financial and Aegean Airlines go up and down completely randomly.
Pair Corralation between Aldel Financial and Aegean Airlines
Assuming the 90 days horizon Aldel Financial is expected to generate 23.91 times less return on investment than Aegean Airlines. But when comparing it to its historical volatility, Aldel Financial II is 21.79 times less risky than Aegean Airlines. It trades about 0.07 of its potential returns per unit of risk. Aegean Airlines SA is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 512.00 in Aegean Airlines SA on August 28, 2024 and sell it today you would earn a total of 573.00 from holding Aegean Airlines SA or generate 111.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 5.47% |
| Values | Daily Returns |
Aldel Financial II vs. Aegean Airlines SA
Performance |
| Timeline |
| Aldel Financial II |
| Aegean Airlines SA |
Aldel Financial and Aegean Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aldel Financial and Aegean Airlines
The main advantage of trading using opposite Aldel Financial and Aegean Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aldel Financial position performs unexpectedly, Aegean Airlines 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 Aegean Airlines will offset losses from the drop in Aegean Airlines' long position.| Aldel Financial vs. dMY Squared Technology | Aldel Financial vs. Vine Hill Capital | Aldel Financial vs. DP Cap Acquisition | Aldel Financial vs. PowerUp Acquisition Corp |
| 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |