Correlation Between Profile Systems and Aegean Airlines
Can any of the company-specific risk be diversified away by investing in both Profile Systems 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 Profile Systems and Aegean Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Profile Systems Software and Aegean Airlines SA, you can compare the effects of market volatilities on Profile Systems 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 Profile Systems with a short position of Aegean Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Profile Systems and Aegean Airlines.
Diversification Opportunities for Profile Systems and Aegean Airlines
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Profile and Aegean is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Profile Systems Software 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 Profile Systems 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 Profile Systems Software 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 Profile Systems i.e., Profile Systems and Aegean Airlines go up and down completely randomly.
Pair Corralation between Profile Systems and Aegean Airlines
Assuming the 90 days trading horizon Profile Systems Software is expected to generate 0.97 times more return on investment than Aegean Airlines. However, Profile Systems Software is 1.03 times less risky than Aegean Airlines. It trades about 0.06 of its potential returns per unit of risk. Aegean Airlines SA is currently generating about 0.04 per unit of risk. If you would invest 340.00 in Profile Systems Software on August 29, 2024 and sell it today you would earn a total of 172.00 from holding Profile Systems Software or generate 50.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Profile Systems Software vs. Aegean Airlines SA
Performance |
| Timeline |
| Profile Systems Software |
| Aegean Airlines SA |
Profile Systems and Aegean Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Profile Systems and Aegean Airlines
The main advantage of trading using opposite Profile Systems and Aegean Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Profile Systems 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.| Profile Systems vs. Terna Energy Societe | Profile Systems vs. Mytilineos SA | Profile Systems vs. Public Power | Profile Systems vs. Autohellas SA |
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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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