Correlation Between Micromobility and Aegean Airlines
Can any of the company-specific risk be diversified away by investing in both Micromobility 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 Micromobility and Aegean Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Micromobility and Aegean Airlines SA, you can compare the effects of market volatilities on Micromobility 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 Micromobility with a short position of Aegean Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Micromobility and Aegean Airlines.
Diversification Opportunities for Micromobility and Aegean Airlines
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Micromobility and Aegean is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Micromobility 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 Micromobility 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 Micromobility 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 Micromobility i.e., Micromobility and Aegean Airlines go up and down completely randomly.
Pair Corralation between Micromobility and Aegean Airlines
Assuming the 90 days horizon Micromobility is expected to under-perform the Aegean Airlines. In addition to that, Micromobility is 5.35 times more volatile than Aegean Airlines SA. It trades about -0.01 of its total potential returns per unit of risk. Aegean Airlines SA is currently generating about 0.07 per unit of volatility. If you would invest 532.00 in Aegean Airlines SA on September 3, 2024 and sell it today you would earn a total of 553.00 from holding Aegean Airlines SA or generate 103.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 30.65% |
| Values | Daily Returns |
Micromobility vs. Aegean Airlines SA
Performance |
| Timeline |
| Micromobility |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Aegean Airlines SA |
Micromobility and Aegean Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Micromobility and Aegean Airlines
The main advantage of trading using opposite Micromobility and Aegean Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Micromobility 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.| Micromobility vs. Zhihu Inc ADR | Micromobility vs. Visteon Corp | Micromobility vs. Cadence Design Systems | Micromobility vs. BorgWarner |
| 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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