Correlation Between Optronics Technologies and Aegean Airlines
Can any of the company-specific risk be diversified away by investing in both Optronics Technologies 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 Optronics Technologies and Aegean Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Optronics Technologies SA and Aegean Airlines SA, you can compare the effects of market volatilities on Optronics Technologies 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 Optronics Technologies with a short position of Aegean Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Optronics Technologies and Aegean Airlines.
Diversification Opportunities for Optronics Technologies and Aegean Airlines
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Optronics and Aegean is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Optronics Technologies SA 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 Optronics Technologies 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 Optronics Technologies SA 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 Optronics Technologies i.e., Optronics Technologies and Aegean Airlines go up and down completely randomly.
Pair Corralation between Optronics Technologies and Aegean Airlines
Assuming the 90 days trading horizon Optronics Technologies SA is expected to under-perform the Aegean Airlines. In addition to that, Optronics Technologies is 1.27 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 516.00 in Aegean Airlines SA on August 30, 2024 and sell it today you would earn a total of 450.00 from holding Aegean Airlines SA or generate 87.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Optronics Technologies SA vs. Aegean Airlines SA
Performance |
| Timeline |
| Optronics Technologies |
| Aegean Airlines SA |
Optronics Technologies and Aegean Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Optronics Technologies and Aegean Airlines
The main advantage of trading using opposite Optronics Technologies and Aegean Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Optronics Technologies 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.| Optronics Technologies vs. Admie Holding SA | Optronics Technologies vs. Coca Cola HBC AG | Optronics Technologies vs. Quest Holdings SA | Optronics Technologies vs. Motor Oil Corinth |
| Aegean Airlines vs. Mytilineos SA | Aegean Airlines vs. Greek Organization of | Aegean Airlines vs. Motor Oil Corinth | Aegean Airlines vs. Alpha Services and |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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