Correlation Between Kinepolis Group and AEGEAN AIRLINES
Can any of the company-specific risk be diversified away by investing in both Kinepolis Group 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 Kinepolis Group and AEGEAN AIRLINES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinepolis Group NV and AEGEAN AIRLINES, you can compare the effects of market volatilities on Kinepolis Group 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 Kinepolis Group with a short position of AEGEAN AIRLINES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinepolis Group and AEGEAN AIRLINES.
Diversification Opportunities for Kinepolis Group and AEGEAN AIRLINES
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kinepolis and AEGEAN is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Kinepolis Group NV and AEGEAN AIRLINES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AEGEAN AIRLINES and Kinepolis Group 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 Kinepolis Group NV 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 has no effect on the direction of Kinepolis Group i.e., Kinepolis Group and AEGEAN AIRLINES go up and down completely randomly.
Pair Corralation between Kinepolis Group and AEGEAN AIRLINES
Assuming the 90 days trading horizon Kinepolis Group NV is expected to generate 0.94 times more return on investment than AEGEAN AIRLINES. However, Kinepolis Group NV is 1.07 times less risky than AEGEAN AIRLINES. It trades about 0.22 of its potential returns per unit of risk. AEGEAN AIRLINES is currently generating about 0.18 per unit of risk. If you would invest 3,805 in Kinepolis Group NV on October 9, 2024 and sell it today you would earn a total of 150.00 from holding Kinepolis Group NV or generate 3.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinepolis Group NV vs. AEGEAN AIRLINES
Performance |
| Timeline |
| Kinepolis Group NV |
| AEGEAN AIRLINES |
Kinepolis Group and AEGEAN AIRLINES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinepolis Group and AEGEAN AIRLINES
The main advantage of trading using opposite Kinepolis Group and AEGEAN AIRLINES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinepolis Group 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's long position.| Kinepolis Group vs. The Home Depot | Kinepolis Group vs. SCANSOURCE | Kinepolis Group vs. alstria office REIT AG | Kinepolis Group vs. Aedas Homes SA |
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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