Correlation Between Legacy Education and Aegean Airlines
Can any of the company-specific risk be diversified away by investing in both Legacy Education 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 Legacy Education and Aegean Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Legacy Education and Aegean Airlines SA, you can compare the effects of market volatilities on Legacy Education 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 Legacy Education with a short position of Aegean Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Legacy Education and Aegean Airlines.
Diversification Opportunities for Legacy Education and Aegean Airlines
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Legacy and Aegean is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Legacy Education 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 Legacy Education 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 Legacy Education 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 Legacy Education i.e., Legacy Education and Aegean Airlines go up and down completely randomly.
Pair Corralation between Legacy Education and Aegean Airlines
Given the investment horizon of 90 days Legacy Education is expected to generate 3.18 times more return on investment than Aegean Airlines. However, Legacy Education is 3.18 times more volatile than Aegean Airlines SA. It trades about 0.28 of its potential returns per unit of risk. Aegean Airlines SA is currently generating about -0.15 per unit of risk. If you would invest 477.00 in Legacy Education on September 3, 2024 and sell it today you would earn a total of 344.00 from holding Legacy Education or generate 72.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
Legacy Education vs. Aegean Airlines SA
Performance |
| Timeline |
| Legacy Education |
| Aegean Airlines SA |
Legacy Education and Aegean Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Legacy Education and Aegean Airlines
The main advantage of trading using opposite Legacy Education and Aegean Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Legacy Education 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.| Legacy Education vs. Xunlei Ltd Adr | Legacy Education vs. Lipocine | Legacy Education vs. Dolphin Entertainment | Legacy Education vs. WiMi Hologram Cloud |
| Aegean Airlines vs. Copa Holdings SA | Aegean Airlines vs. United Airlines Holdings | Aegean Airlines vs. Delta Air Lines | Aegean Airlines vs. SkyWest |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |