Correlation Between CHINA TONTINE and Aegean Airlines
Can any of the company-specific risk be diversified away by investing in both CHINA TONTINE 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 CHINA TONTINE and Aegean Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CHINA TONTINE WINES and Aegean Airlines SA, you can compare the effects of market volatilities on CHINA TONTINE 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 CHINA TONTINE with a short position of Aegean Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHINA TONTINE and Aegean Airlines.
Diversification Opportunities for CHINA TONTINE and Aegean Airlines
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CHINA and Aegean is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CHINA TONTINE WINES 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 CHINA TONTINE 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 CHINA TONTINE WINES 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 CHINA TONTINE i.e., CHINA TONTINE and Aegean Airlines go up and down completely randomly.
Pair Corralation between CHINA TONTINE and Aegean Airlines
Assuming the 90 days trading horizon CHINA TONTINE WINES is expected to generate 17.11 times more return on investment than Aegean Airlines. However, CHINA TONTINE is 17.11 times more volatile than Aegean Airlines SA. It trades about 0.04 of its potential returns per unit of risk. Aegean Airlines SA is currently generating about 0.05 per unit of risk. If you would invest 0.70 in CHINA TONTINE WINES on October 26, 2024 and sell it today you would earn a total of 6.30 from holding CHINA TONTINE WINES or generate 900.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
CHINA TONTINE WINES vs. Aegean Airlines SA
Performance |
| Timeline |
| CHINA TONTINE WINES |
| Aegean Airlines SA |
CHINA TONTINE and Aegean Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHINA TONTINE and Aegean Airlines
The main advantage of trading using opposite CHINA TONTINE and Aegean Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHINA TONTINE 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.| CHINA TONTINE vs. MidCap Financial Investment | CHINA TONTINE vs. BJs Restaurants | CHINA TONTINE vs. GREENX METALS LTD | CHINA TONTINE vs. PennantPark Investment |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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