Correlation Between MAG Silver and Aegean Airlines
Can any of the company-specific risk be diversified away by investing in both MAG Silver 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 MAG Silver and Aegean Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MAG Silver Corp and Aegean Airlines SA, you can compare the effects of market volatilities on MAG Silver 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 MAG Silver with a short position of Aegean Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAG Silver and Aegean Airlines.
Diversification Opportunities for MAG Silver and Aegean Airlines
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between MAG and Aegean is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding MAG Silver Corp 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 MAG Silver 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 MAG Silver Corp 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 MAG Silver i.e., MAG Silver and Aegean Airlines go up and down completely randomly.
Pair Corralation between MAG Silver and Aegean Airlines
Assuming the 90 days horizon MAG Silver is expected to generate 3.56 times less return on investment than Aegean Airlines. In addition to that, MAG Silver is 1.32 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 536.00 in Aegean Airlines SA on October 11, 2024 and sell it today you would earn a total of 486.00 from holding Aegean Airlines SA or generate 90.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MAG Silver Corp vs. Aegean Airlines SA
Performance |
| Timeline |
| MAG Silver Corp |
| Aegean Airlines SA |
MAG Silver and Aegean Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAG Silver and Aegean Airlines
The main advantage of trading using opposite MAG Silver and Aegean Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAG Silver 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.| MAG Silver vs. Aegean Airlines SA | MAG Silver vs. ASURE SOFTWARE | MAG Silver vs. Axway Software SA | MAG Silver vs. FORMPIPE SOFTWARE AB |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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