Correlation Between CEOTRONICS (CEKSG) and Aegean Airlines
Can any of the company-specific risk be diversified away by investing in both CEOTRONICS (CEKSG) 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 CEOTRONICS (CEKSG) and Aegean Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CEOTRONICS and Aegean Airlines SA, you can compare the effects of market volatilities on CEOTRONICS (CEKSG) 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 CEOTRONICS (CEKSG) with a short position of Aegean Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of CEOTRONICS (CEKSG) and Aegean Airlines.
Diversification Opportunities for CEOTRONICS (CEKSG) and Aegean Airlines
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CEOTRONICS and Aegean is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding CEOTRONICS 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 CEOTRONICS (CEKSG) 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 CEOTRONICS 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 CEOTRONICS (CEKSG) i.e., CEOTRONICS (CEKSG) and Aegean Airlines go up and down completely randomly.
Pair Corralation between CEOTRONICS (CEKSG) and Aegean Airlines
Assuming the 90 days trading horizon CEOTRONICS is expected to generate 1.22 times more return on investment than Aegean Airlines. However, CEOTRONICS (CEKSG) is 1.22 times more volatile than Aegean Airlines SA. It trades about 0.07 of its potential returns per unit of risk. Aegean Airlines SA is currently generating about 0.02 per unit of risk. If you would invest 330.00 in CEOTRONICS on August 31, 2024 and sell it today you would earn a total of 290.00 from holding CEOTRONICS or generate 87.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CEOTRONICS vs. Aegean Airlines SA
Performance |
| Timeline |
| CEOTRONICS (CEKSG) |
| Aegean Airlines SA |
CEOTRONICS (CEKSG) and Aegean Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CEOTRONICS (CEKSG) and Aegean Airlines
The main advantage of trading using opposite CEOTRONICS (CEKSG) and Aegean Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CEOTRONICS (CEKSG) 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.| CEOTRONICS (CEKSG) vs. InterContinental Hotels Group | CEOTRONICS (CEKSG) vs. CosmoSteel Holdings Limited | CEOTRONICS (CEKSG) vs. LEGACY IRON ORE | CEOTRONICS (CEKSG) vs. CECO ENVIRONMENTAL |
| Aegean Airlines vs. Southwest Airlines Co | Aegean Airlines vs. Superior Plus Corp | Aegean Airlines vs. NMI Holdings | Aegean Airlines vs. Origin Agritech |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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