Correlation Between Sonida Senior and Aegean Airlines
Can any of the company-specific risk be diversified away by investing in both Sonida Senior 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 Sonida Senior and Aegean Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sonida Senior Living and Aegean Airlines SA, you can compare the effects of market volatilities on Sonida Senior 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 Sonida Senior with a short position of Aegean Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sonida Senior and Aegean Airlines.
Diversification Opportunities for Sonida Senior and Aegean Airlines
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sonida and Aegean is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Sonida Senior Living 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 Sonida Senior 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 Sonida Senior Living 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 Sonida Senior i.e., Sonida Senior and Aegean Airlines go up and down completely randomly.
Pair Corralation between Sonida Senior and Aegean Airlines
Given the investment horizon of 90 days Sonida Senior Living is expected to generate 2.51 times more return on investment than Aegean Airlines. However, Sonida Senior is 2.51 times more volatile than Aegean Airlines SA. It trades about 0.08 of its potential returns per unit of risk. Aegean Airlines SA is currently generating about 0.01 per unit of risk. If you would invest 946.00 in Sonida Senior Living on September 12, 2024 and sell it today you would earn a total of 1,596 from holding Sonida Senior Living or generate 168.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.43% |
| Values | Daily Returns |
Sonida Senior Living vs. Aegean Airlines SA
Performance |
| Timeline |
| Sonida Senior Living |
| Aegean Airlines SA |
Sonida Senior and Aegean Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sonida Senior and Aegean Airlines
The main advantage of trading using opposite Sonida Senior and Aegean Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sonida Senior 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.| Sonida Senior vs. Select Medical Holdings | Sonida Senior vs. Encompass Health Corp | Sonida Senior vs. Pennant Group | Sonida Senior vs. InnovAge Holding Corp |
| 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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