Correlation Between National Beverage and Aegean Airlines
Can any of the company-specific risk be diversified away by investing in both National Beverage 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 National Beverage and Aegean Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Beverage Corp and Aegean Airlines SA, you can compare the effects of market volatilities on National Beverage 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 National Beverage with a short position of Aegean Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Beverage and Aegean Airlines.
Diversification Opportunities for National Beverage and Aegean Airlines
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between National and Aegean is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding National Beverage Corp 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 National Beverage 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 National Beverage Corp 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 National Beverage i.e., National Beverage and Aegean Airlines go up and down completely randomly.
Pair Corralation between National Beverage and Aegean Airlines
Given the investment horizon of 90 days National Beverage Corp is expected to generate 0.67 times more return on investment than Aegean Airlines. However, National Beverage Corp is 1.5 times less risky than Aegean Airlines. It trades about 0.26 of its potential returns per unit of risk. Aegean Airlines SA is currently generating about -0.22 per unit of risk. If you would invest 4,568 in National Beverage Corp on August 28, 2024 and sell it today you would earn a total of 394.00 from holding National Beverage Corp or generate 8.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
National Beverage Corp vs. Aegean Airlines SA
Performance |
| Timeline |
| National Beverage Corp |
| Aegean Airlines SA |
National Beverage and Aegean Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Beverage and Aegean Airlines
The main advantage of trading using opposite National Beverage and Aegean Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Beverage 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.| National Beverage vs. Celsius Holdings | National Beverage vs. Monster Beverage Corp | National Beverage vs. Coca Cola Femsa SAB | National Beverage vs. Keurig Dr Pepper |
| Aegean Airlines vs. Copa Holdings SA | Aegean Airlines vs. United Airlines Holdings | Aegean Airlines vs. Delta Air Lines | Aegean Airlines vs. SkyWest |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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