Correlation Between OAKTRSPECLENDNEW and Aegean Airlines
Can any of the company-specific risk be diversified away by investing in both OAKTRSPECLENDNEW 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 OAKTRSPECLENDNEW and Aegean Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OAKTRSPECLENDNEW and Aegean Airlines SA, you can compare the effects of market volatilities on OAKTRSPECLENDNEW 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 OAKTRSPECLENDNEW with a short position of Aegean Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of OAKTRSPECLENDNEW and Aegean Airlines.
Diversification Opportunities for OAKTRSPECLENDNEW and Aegean Airlines
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between OAKTRSPECLENDNEW and Aegean is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding OAKTRSPECLENDNEW 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 OAKTRSPECLENDNEW 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 OAKTRSPECLENDNEW 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 OAKTRSPECLENDNEW i.e., OAKTRSPECLENDNEW and Aegean Airlines go up and down completely randomly.
Pair Corralation between OAKTRSPECLENDNEW and Aegean Airlines
Assuming the 90 days trading horizon OAKTRSPECLENDNEW is expected to generate 0.92 times more return on investment than Aegean Airlines. However, OAKTRSPECLENDNEW is 1.09 times less risky than Aegean Airlines. It trades about -0.03 of its potential returns per unit of risk. Aegean Airlines SA is currently generating about -0.08 per unit of risk. If you would invest 1,666 in OAKTRSPECLENDNEW on September 2, 2024 and sell it today you would lose (140.00) from holding OAKTRSPECLENDNEW or give up 8.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OAKTRSPECLENDNEW vs. Aegean Airlines SA
Performance |
| Timeline |
| OAKTRSPECLENDNEW |
| Aegean Airlines SA |
OAKTRSPECLENDNEW and Aegean Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OAKTRSPECLENDNEW and Aegean Airlines
The main advantage of trading using opposite OAKTRSPECLENDNEW and Aegean Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OAKTRSPECLENDNEW 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.| OAKTRSPECLENDNEW vs. TERADATA | OAKTRSPECLENDNEW vs. Air Transport Services | OAKTRSPECLENDNEW vs. MICRONIC MYDATA | OAKTRSPECLENDNEW vs. KAUFMAN ET BROAD |
| Aegean Airlines vs. Superior Plus Corp | Aegean Airlines vs. NMI Holdings | Aegean Airlines vs. Origin Agritech | 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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