Correlation Between Hellenic Telecommunicatio and Aegean Airlines
Can any of the company-specific risk be diversified away by investing in both Hellenic Telecommunicatio 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 Hellenic Telecommunicatio and Aegean Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hellenic Telecommunications Organization and Aegean Airlines SA, you can compare the effects of market volatilities on Hellenic Telecommunicatio 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 Hellenic Telecommunicatio with a short position of Aegean Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hellenic Telecommunicatio and Aegean Airlines.
Diversification Opportunities for Hellenic Telecommunicatio and Aegean Airlines
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Hellenic and Aegean is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Hellenic Telecommunications Or 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 Hellenic Telecommunicatio 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 Hellenic Telecommunications Organization 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 Hellenic Telecommunicatio i.e., Hellenic Telecommunicatio and Aegean Airlines go up and down completely randomly.
Pair Corralation between Hellenic Telecommunicatio and Aegean Airlines
Assuming the 90 days trading horizon Hellenic Telecommunicatio is expected to generate 2.38 times less return on investment than Aegean Airlines. But when comparing it to its historical volatility, Hellenic Telecommunications Organization is 1.39 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 0.05 of returns per unit of risk over similar time horizon. If you would invest 709.00 in Aegean Airlines SA on November 30, 2024 and sell it today you would earn a total of 368.00 from holding Aegean Airlines SA or generate 51.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hellenic Telecommunications Or vs. Aegean Airlines SA
Performance |
| Timeline |
| Hellenic Telecommunicatio |
| Aegean Airlines SA |
Hellenic Telecommunicatio and Aegean Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hellenic Telecommunicatio and Aegean Airlines
The main advantage of trading using opposite Hellenic Telecommunicatio and Aegean Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hellenic Telecommunicatio 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.| Hellenic Telecommunicatio vs. Greek Organization of | Hellenic Telecommunicatio vs. Mytilineos SA | Hellenic Telecommunicatio vs. Public Power | Hellenic Telecommunicatio vs. Motor Oil Corinth |
| Aegean Airlines vs. Mytilineos SA | Aegean Airlines vs. Greek Organization of | Aegean Airlines vs. Motor Oil Corinth | Aegean Airlines vs. Alpha Services and |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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