Correlation Between MUTUIONLINE and AEGEAN AIRLINES
Can any of the company-specific risk be diversified away by investing in both MUTUIONLINE 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 MUTUIONLINE and AEGEAN AIRLINES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MUTUIONLINE and AEGEAN AIRLINES, you can compare the effects of market volatilities on MUTUIONLINE 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 MUTUIONLINE with a short position of AEGEAN AIRLINES. Check out your portfolio center. Please also check ongoing floating volatility patterns of MUTUIONLINE and AEGEAN AIRLINES.
Diversification Opportunities for MUTUIONLINE and AEGEAN AIRLINES
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between MUTUIONLINE and AEGEAN is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding MUTUIONLINE and AEGEAN AIRLINES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AEGEAN AIRLINES and MUTUIONLINE 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 MUTUIONLINE 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 MUTUIONLINE i.e., MUTUIONLINE and AEGEAN AIRLINES go up and down completely randomly.
Pair Corralation between MUTUIONLINE and AEGEAN AIRLINES
Assuming the 90 days trading horizon MUTUIONLINE is expected to generate 1.28 times more return on investment than AEGEAN AIRLINES. However, MUTUIONLINE is 1.28 times more volatile than AEGEAN AIRLINES. It trades about 0.29 of its potential returns per unit of risk. AEGEAN AIRLINES is currently generating about -0.23 per unit of risk. If you would invest 3,250 in MUTUIONLINE on August 25, 2024 and sell it today you would earn a total of 455.00 from holding MUTUIONLINE or generate 14.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MUTUIONLINE vs. AEGEAN AIRLINES
Performance |
| Timeline |
| MUTUIONLINE |
| AEGEAN AIRLINES |
MUTUIONLINE and AEGEAN AIRLINES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MUTUIONLINE and AEGEAN AIRLINES
The main advantage of trading using opposite MUTUIONLINE and AEGEAN AIRLINES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MUTUIONLINE 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.| MUTUIONLINE vs. Cass Information Systems | MUTUIONLINE vs. OFFICE DEPOT | MUTUIONLINE vs. Chesapeake Utilities | MUTUIONLINE vs. DATAGROUP SE |
| AEGEAN AIRLINES vs. H FARM SPA | AEGEAN AIRLINES vs. North American Construction | AEGEAN AIRLINES vs. MUTUIONLINE | AEGEAN AIRLINES vs. Sumitomo Mitsui Construction |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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