Correlation Between Apple and AEGEAN AIRLINES
Can any of the company-specific risk be diversified away by investing in both Apple 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 Apple and AEGEAN AIRLINES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and AEGEAN AIRLINES, you can compare the effects of market volatilities on Apple 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 Apple with a short position of AEGEAN AIRLINES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and AEGEAN AIRLINES.
Diversification Opportunities for Apple and AEGEAN AIRLINES
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Apple and AEGEAN is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and AEGEAN AIRLINES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AEGEAN AIRLINES and Apple 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 Apple Inc 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 has no effect on the direction of Apple i.e., Apple and AEGEAN AIRLINES go up and down completely randomly.
Pair Corralation between Apple and AEGEAN AIRLINES
Assuming the 90 days trading horizon Apple Inc is expected to under-perform the AEGEAN AIRLINES. In addition to that, Apple is 1.04 times more volatile than AEGEAN AIRLINES. It trades about -0.01 of its total potential returns per unit of risk. AEGEAN AIRLINES is currently generating about 0.2 per unit of volatility. If you would invest 951.00 in AEGEAN AIRLINES on November 3, 2024 and sell it today you would earn a total of 116.00 from holding AEGEAN AIRLINES or generate 12.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apple Inc vs. AEGEAN AIRLINES
Performance |
| Timeline |
| Apple Inc |
| AEGEAN AIRLINES |
Apple and AEGEAN AIRLINES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and AEGEAN AIRLINES
The main advantage of trading using opposite Apple and AEGEAN AIRLINES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple 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's long position.| Apple vs. GRIFFIN MINING LTD | Apple vs. MINCO SILVER | Apple vs. GALENA MINING LTD | Apple vs. Kingdee International Software |
| AEGEAN AIRLINES vs. Highlight Communications AG | AEGEAN AIRLINES vs. Silicon Motion Technology | AEGEAN AIRLINES vs. Chunghwa Telecom Co | AEGEAN AIRLINES vs. Mitsubishi Gas Chemical |
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.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |