Correlation Between AECOM TECHNOLOGY and Aegean Airlines
Can any of the company-specific risk be diversified away by investing in both AECOM TECHNOLOGY 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 AECOM TECHNOLOGY and Aegean Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AECOM TECHNOLOGY and Aegean Airlines SA, you can compare the effects of market volatilities on AECOM TECHNOLOGY 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 AECOM TECHNOLOGY with a short position of Aegean Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of AECOM TECHNOLOGY and Aegean Airlines.
Diversification Opportunities for AECOM TECHNOLOGY and Aegean Airlines
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AECOM and Aegean is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding AECOM TECHNOLOGY 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 AECOM TECHNOLOGY 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 AECOM TECHNOLOGY 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 AECOM TECHNOLOGY i.e., AECOM TECHNOLOGY and Aegean Airlines go up and down completely randomly.
Pair Corralation between AECOM TECHNOLOGY and Aegean Airlines
Assuming the 90 days trading horizon AECOM TECHNOLOGY is expected to generate 0.77 times more return on investment than Aegean Airlines. However, AECOM TECHNOLOGY is 1.3 times less risky than Aegean Airlines. It trades about 0.07 of its potential returns per unit of risk. Aegean Airlines SA is currently generating about 0.0 per unit of risk. If you would invest 7,898 in AECOM TECHNOLOGY on October 11, 2024 and sell it today you would earn a total of 2,402 from holding AECOM TECHNOLOGY or generate 30.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AECOM TECHNOLOGY vs. Aegean Airlines SA
Performance |
| Timeline |
| AECOM TECHNOLOGY |
| Aegean Airlines SA |
AECOM TECHNOLOGY and Aegean Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AECOM TECHNOLOGY and Aegean Airlines
The main advantage of trading using opposite AECOM TECHNOLOGY and Aegean Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AECOM TECHNOLOGY 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.| AECOM TECHNOLOGY vs. Eurasia Mining Plc | AECOM TECHNOLOGY vs. MCEWEN MINING INC | AECOM TECHNOLOGY vs. Monument Mining Limited | AECOM TECHNOLOGY vs. Grand Canyon Education |
| Aegean Airlines vs. AECOM TECHNOLOGY | Aegean Airlines vs. DXC Technology Co | Aegean Airlines vs. MidCap Financial Investment | Aegean Airlines vs. FIRST SAVINGS FINL |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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