Correlation Between Natural Alternatives and Aegean Airlines
Can any of the company-specific risk be diversified away by investing in both Natural Alternatives 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 Natural Alternatives and Aegean Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Natural Alternatives International and Aegean Airlines SA, you can compare the effects of market volatilities on Natural Alternatives 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 Natural Alternatives with a short position of Aegean Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Natural Alternatives and Aegean Airlines.
Diversification Opportunities for Natural Alternatives and Aegean Airlines
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Natural and Aegean is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Natural Alternatives Internati 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 Natural Alternatives 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 Natural Alternatives International 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 Natural Alternatives i.e., Natural Alternatives and Aegean Airlines go up and down completely randomly.
Pair Corralation between Natural Alternatives and Aegean Airlines
Given the investment horizon of 90 days Natural Alternatives International is expected to under-perform the Aegean Airlines. In addition to that, Natural Alternatives is 1.35 times more volatile than Aegean Airlines SA. It trades about -0.02 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 | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Natural Alternatives Internati vs. Aegean Airlines SA
Performance |
| Timeline |
| Natural Alternatives |
| Aegean Airlines SA |
Natural Alternatives and Aegean Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Natural Alternatives and Aegean Airlines
The main advantage of trading using opposite Natural Alternatives and Aegean Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Natural Alternatives 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.| Natural Alternatives vs. FitLife Brands, Common | Natural Alternatives vs. Lifeway Foods | Natural Alternatives vs. Else Nutrition Holdings | Natural Alternatives vs. Central Garden Pet |
| 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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |