Correlation Between Air New and FlatexDEGIRO
Can any of the company-specific risk be diversified away by investing in both Air New and FlatexDEGIRO 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 Air New and FlatexDEGIRO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Air New Zealand and flatexDEGIRO AG, you can compare the effects of market volatilities on Air New and FlatexDEGIRO 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 Air New with a short position of FlatexDEGIRO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air New and FlatexDEGIRO.
Diversification Opportunities for Air New and FlatexDEGIRO
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Air and FlatexDEGIRO is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Air New Zealand and flatexDEGIRO AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on flatexDEGIRO AG and Air New 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 Air New Zealand are associated (or correlated) with FlatexDEGIRO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of flatexDEGIRO AG has no effect on the direction of Air New i.e., Air New and FlatexDEGIRO go up and down completely randomly.
Pair Corralation between Air New and FlatexDEGIRO
Assuming the 90 days trading horizon Air New Zealand is expected to under-perform the FlatexDEGIRO. But the stock apears to be less risky and, when comparing its historical volatility, Air New Zealand is 1.41 times less risky than FlatexDEGIRO. The stock trades about -0.01 of its potential returns per unit of risk. The flatexDEGIRO AG is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 799.00 in flatexDEGIRO AG on October 13, 2024 and sell it today you would earn a total of 725.00 from holding flatexDEGIRO AG or generate 90.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Air New Zealand vs. flatexDEGIRO AG
Performance |
| Timeline |
| Air New Zealand |
| flatexDEGIRO AG |
Air New and FlatexDEGIRO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air New and FlatexDEGIRO
The main advantage of trading using opposite Air New and FlatexDEGIRO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air New position performs unexpectedly, FlatexDEGIRO 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 FlatexDEGIRO will offset losses from the drop in FlatexDEGIRO's long position.| Air New vs. Canadian Utilities Limited | Air New vs. Geely Automobile Holdings | Air New vs. T Mobile | Air New vs. ENVVENO MEDICAL DL 00001 |
| FlatexDEGIRO vs. SYSTEMAIR AB | FlatexDEGIRO vs. RYANAIR HLDGS ADR | FlatexDEGIRO vs. Alaska Air Group | FlatexDEGIRO vs. Air New Zealand |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |