Correlation Between Hang Seng and Aegean Airlines
Can any of the company-specific risk be diversified away by investing in both Hang Seng 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 Hang Seng and Aegean Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hang Seng Bank and Aegean Airlines SA, you can compare the effects of market volatilities on Hang Seng 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 Hang Seng with a short position of Aegean Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hang Seng and Aegean Airlines.
Diversification Opportunities for Hang Seng and Aegean Airlines
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hang and Aegean is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Hang Seng Bank 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 Hang Seng 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 Hang Seng Bank 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 Hang Seng i.e., Hang Seng and Aegean Airlines go up and down completely randomly.
Pair Corralation between Hang Seng and Aegean Airlines
Assuming the 90 days horizon Hang Seng Bank is expected to generate 0.53 times more return on investment than Aegean Airlines. However, Hang Seng Bank is 1.9 times less risky than Aegean Airlines. It trades about 0.05 of its potential returns per unit of risk. Aegean Airlines SA is currently generating about -0.05 per unit of risk. If you would invest 1,120 in Hang Seng Bank on September 3, 2024 and sell it today you would earn a total of 10.00 from holding Hang Seng Bank or generate 0.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hang Seng Bank vs. Aegean Airlines SA
Performance |
| Timeline |
| Hang Seng Bank |
| Aegean Airlines SA |
Hang Seng and Aegean Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hang Seng and Aegean Airlines
The main advantage of trading using opposite Hang Seng and Aegean Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hang Seng 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.| Hang Seng vs. Aegean Airlines SA | Hang Seng vs. Warner Music Group | Hang Seng vs. Tencent Music Entertainment | Hang Seng vs. AEGEAN AIRLINES |
| Aegean Airlines vs. ETFS Coffee ETC | Aegean Airlines vs. Darden Restaurants | Aegean Airlines vs. Waste Management | Aegean Airlines vs. BJs Restaurants |
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 CEOs Directory module to screen CEOs from public companies around the world.
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