Correlation Between Data Modul and AEGEAN AIRLINES
Can any of the company-specific risk be diversified away by investing in both Data Modul 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 Data Modul and AEGEAN AIRLINES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Data Modul AG and AEGEAN AIRLINES, you can compare the effects of market volatilities on Data Modul 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 Data Modul with a short position of AEGEAN AIRLINES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Data Modul and AEGEAN AIRLINES.
Diversification Opportunities for Data Modul and AEGEAN AIRLINES
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Data and AEGEAN is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Data Modul AG and AEGEAN AIRLINES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AEGEAN AIRLINES and Data Modul 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 Data Modul AG 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 Data Modul i.e., Data Modul and AEGEAN AIRLINES go up and down completely randomly.
Pair Corralation between Data Modul and AEGEAN AIRLINES
Assuming the 90 days trading horizon Data Modul AG is expected to under-perform the AEGEAN AIRLINES. In addition to that, Data Modul is 1.31 times more volatile than AEGEAN AIRLINES. It trades about -0.1 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 950.00 in AEGEAN AIRLINES on October 30, 2024 and sell it today you would earn a total of 111.00 from holding AEGEAN AIRLINES or generate 11.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Data Modul AG vs. AEGEAN AIRLINES
Performance |
| Timeline |
| Data Modul AG |
| AEGEAN AIRLINES |
Data Modul and AEGEAN AIRLINES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Data Modul and AEGEAN AIRLINES
The main advantage of trading using opposite Data Modul and AEGEAN AIRLINES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Data Modul 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.The idea behind Data Modul AG and AEGEAN AIRLINES pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| AEGEAN AIRLINES vs. CN MODERN DAIRY | AEGEAN AIRLINES vs. COFCO Joycome Foods | AEGEAN AIRLINES vs. CAL MAINE FOODS | AEGEAN AIRLINES vs. Yanzhou Coal Mining |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |