Correlation Between Intralot and Aegean Airlines
Can any of the company-specific risk be diversified away by investing in both Intralot 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 Intralot and Aegean Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intralot SA Integrated and Aegean Airlines SA, you can compare the effects of market volatilities on Intralot 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 Intralot with a short position of Aegean Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intralot and Aegean Airlines.
Diversification Opportunities for Intralot and Aegean Airlines
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Intralot and Aegean is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Intralot SA Integrated 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 Intralot 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 Intralot SA Integrated 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 Intralot i.e., Intralot and Aegean Airlines go up and down completely randomly.
Pair Corralation between Intralot and Aegean Airlines
Assuming the 90 days trading horizon Intralot SA Integrated is expected to under-perform the Aegean Airlines. In addition to that, Intralot is 1.44 times more volatile than Aegean Airlines SA. It trades about -0.22 of its total potential returns per unit of risk. Aegean Airlines SA is currently generating about -0.22 per unit of volatility. If you would invest 1,110 in Aegean Airlines SA on August 28, 2024 and sell it today you would lose (134.00) from holding Aegean Airlines SA or give up 12.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intralot SA Integrated vs. Aegean Airlines SA
Performance |
| Timeline |
| Intralot SA Integrated |
| Aegean Airlines SA |
Intralot and Aegean Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intralot and Aegean Airlines
The main advantage of trading using opposite Intralot and Aegean Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intralot 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.| Intralot vs. Mytilineos SA | Intralot vs. Hellenic Telecommunications Organization | Intralot vs. Motor Oil Corinth | Intralot vs. Alpha Services and |
| 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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