Correlation Between Reservoir Media and Aegean Airlines
Can any of the company-specific risk be diversified away by investing in both Reservoir Media 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 Reservoir Media and Aegean Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Reservoir Media and Aegean Airlines SA, you can compare the effects of market volatilities on Reservoir Media 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 Reservoir Media with a short position of Aegean Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Reservoir Media and Aegean Airlines.
Diversification Opportunities for Reservoir Media and Aegean Airlines
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Reservoir and Aegean is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Reservoir Media 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 Reservoir Media 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 Reservoir Media 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 Reservoir Media i.e., Reservoir Media and Aegean Airlines go up and down completely randomly.
Pair Corralation between Reservoir Media and Aegean Airlines
If you would invest 911.00 in Reservoir Media on September 12, 2024 and sell it today you would earn a total of 35.00 from holding Reservoir Media or generate 3.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Reservoir Media vs. Aegean Airlines SA
Performance |
| Timeline |
| Reservoir Media |
| Aegean Airlines SA |
Reservoir Media and Aegean Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Reservoir Media and Aegean Airlines
The main advantage of trading using opposite Reservoir Media and Aegean Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Reservoir Media 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.| Reservoir Media vs. Reading International | Reservoir Media vs. Marcus | Reservoir Media vs. Gaia Inc | Reservoir Media vs. News Corp B |
| 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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