Correlation Between Old Republic and Aegean Airlines
Can any of the company-specific risk be diversified away by investing in both Old Republic 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 Old Republic and Aegean Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Old Republic International and Aegean Airlines SA, you can compare the effects of market volatilities on Old Republic 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 Old Republic with a short position of Aegean Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Old Republic and Aegean Airlines.
Diversification Opportunities for Old Republic and Aegean Airlines
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Old and Aegean is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Old Republic International 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 Old Republic 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 Old Republic 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 Old Republic i.e., Old Republic and Aegean Airlines go up and down completely randomly.
Pair Corralation between Old Republic and Aegean Airlines
If you would invest 1,085 in Aegean Airlines SA on September 20, 2024 and sell it today you would earn a total of 0.00 from holding Aegean Airlines SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Old Republic International vs. Aegean Airlines SA
Performance |
| Timeline |
| Old Republic Interna |
| Aegean Airlines SA |
Old Republic and Aegean Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Old Republic and Aegean Airlines
The main advantage of trading using opposite Old Republic and Aegean Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Old Republic 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.| Old Republic vs. Axa Equitable Holdings | Old Republic vs. American International Group | Old Republic vs. Arch Capital Group | Old Republic vs. Sun Life Financial |
| 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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