Correlation Between Kri Kri and Aegean Airlines
Can any of the company-specific risk be diversified away by investing in both Kri Kri 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 Kri Kri and Aegean Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kri Kri Milk Industry and Aegean Airlines SA, you can compare the effects of market volatilities on Kri Kri 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 Kri Kri with a short position of Aegean Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kri Kri and Aegean Airlines.
Diversification Opportunities for Kri Kri and Aegean Airlines
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kri and Aegean is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Kri Kri Milk Industry 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 Kri Kri 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 Kri Kri Milk Industry 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 Kri Kri i.e., Kri Kri and Aegean Airlines go up and down completely randomly.
Pair Corralation between Kri Kri and Aegean Airlines
Assuming the 90 days trading horizon Kri Kri Milk Industry is expected to generate 1.89 times more return on investment than Aegean Airlines. However, Kri Kri is 1.89 times more volatile than Aegean Airlines SA. It trades about 0.13 of its potential returns per unit of risk. Aegean Airlines SA is currently generating about -0.32 per unit of risk. If you would invest 1,350 in Kri Kri Milk Industry on August 24, 2024 and sell it today you would earn a total of 85.00 from holding Kri Kri Milk Industry or generate 6.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kri Kri Milk Industry vs. Aegean Airlines SA
Performance |
| Timeline |
| Kri Kri Milk |
| Aegean Airlines SA |
Kri Kri and Aegean Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kri Kri and Aegean Airlines
The main advantage of trading using opposite Kri Kri and Aegean Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kri Kri 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.| Kri Kri vs. Motor Oil Corinth | Kri Kri vs. Mytilineos SA | Kri Kri vs. Gr Sarantis SA | Kri Kri vs. Aegean Airlines SA |
| 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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