Correlation Between EVN AG and Aegean Airlines
Can any of the company-specific risk be diversified away by investing in both EVN AG 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 EVN AG and Aegean Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EVN AG and Aegean Airlines SA, you can compare the effects of market volatilities on EVN AG 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 EVN AG with a short position of Aegean Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of EVN AG and Aegean Airlines.
Diversification Opportunities for EVN AG and Aegean Airlines
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between EVN and Aegean is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding EVN AG 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 EVN AG 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 EVN 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 SA has no effect on the direction of EVN AG i.e., EVN AG and Aegean Airlines go up and down completely randomly.
Pair Corralation between EVN AG and Aegean Airlines
Assuming the 90 days horizon EVN AG is expected to under-perform the Aegean Airlines. But the stock apears to be less risky and, when comparing its historical volatility, EVN AG is 1.24 times less risky than Aegean Airlines. The stock trades about -0.1 of its potential returns per unit of risk. The Aegean Airlines SA is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 962.00 in Aegean Airlines SA on September 13, 2024 and sell it today you would earn a total of 43.00 from holding Aegean Airlines SA or generate 4.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
EVN AG vs. Aegean Airlines SA
Performance |
| Timeline |
| EVN AG |
| Aegean Airlines SA |
EVN AG and Aegean Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EVN AG and Aegean Airlines
The main advantage of trading using opposite EVN AG and Aegean Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EVN AG 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.| EVN AG vs. Western Copper and | EVN AG vs. BRIT AMER TOBACCO | EVN AG vs. MCEWEN MINING INC | EVN AG vs. Perseus Mining Limited |
| Aegean Airlines vs. RYANAIR HLDGS ADR | Aegean Airlines vs. Ryanair Holdings plc | Aegean Airlines vs. Superior Plus Corp | Aegean Airlines vs. SIVERS SEMICONDUCTORS AB |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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