Correlation Between Prodea Real and Aegean Airlines
Can any of the company-specific risk be diversified away by investing in both Prodea Real 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 Prodea Real and Aegean Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prodea Real Estate and Aegean Airlines SA, you can compare the effects of market volatilities on Prodea Real 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 Prodea Real with a short position of Aegean Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prodea Real and Aegean Airlines.
Diversification Opportunities for Prodea Real and Aegean Airlines
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Prodea and Aegean is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Prodea Real Estate 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 Prodea Real 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 Prodea Real Estate 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 Prodea Real i.e., Prodea Real and Aegean Airlines go up and down completely randomly.
Pair Corralation between Prodea Real and Aegean Airlines
Assuming the 90 days trading horizon Prodea Real Estate is expected to generate 3.04 times more return on investment than Aegean Airlines. However, Prodea Real is 3.04 times more volatile than Aegean Airlines SA. It trades about 0.02 of its potential returns per unit of risk. Aegean Airlines SA is currently generating about -0.09 per unit of risk. If you would invest 620.00 in Prodea Real Estate on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Prodea Real Estate or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Prodea Real Estate vs. Aegean Airlines SA
Performance |
| Timeline |
| Prodea Real Estate |
| Aegean Airlines SA |
Prodea Real and Aegean Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prodea Real and Aegean Airlines
The main advantage of trading using opposite Prodea Real and Aegean Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prodea Real 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.| Prodea Real vs. Hellenic Telecommunications Organization | Prodea Real vs. Profile Systems Software | Prodea Real vs. Optima bank SA | Prodea Real vs. As Commercial Industrial |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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