Correlation Between Viohalco and Aegean Airlines
Can any of the company-specific risk be diversified away by investing in both Viohalco 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 Viohalco and Aegean Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Viohalco SA and Aegean Airlines SA, you can compare the effects of market volatilities on Viohalco 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 Viohalco with a short position of Aegean Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Viohalco and Aegean Airlines.
Diversification Opportunities for Viohalco and Aegean Airlines
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Viohalco and Aegean is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Viohalco SA 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 Viohalco 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 Viohalco SA 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 Viohalco i.e., Viohalco and Aegean Airlines go up and down completely randomly.
Pair Corralation between Viohalco and Aegean Airlines
Assuming the 90 days trading horizon Viohalco SA is expected to generate 1.27 times more return on investment than Aegean Airlines. However, Viohalco is 1.27 times more volatile than Aegean Airlines SA. It trades about 0.03 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 519.00 in Viohalco SA on August 31, 2024 and sell it today you would earn a total of 5.00 from holding Viohalco SA or generate 0.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Viohalco SA vs. Aegean Airlines SA
Performance |
| Timeline |
| Viohalco SA |
| Aegean Airlines SA |
Viohalco and Aegean Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Viohalco and Aegean Airlines
The main advantage of trading using opposite Viohalco and Aegean Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Viohalco 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.| Viohalco vs. Aegean Airlines SA | Viohalco vs. CPI Computer Peripherals | Viohalco vs. Interlife General Insurance | Viohalco vs. Piraeus Financial Holdings |
| Aegean Airlines vs. Mytilineos SA | Aegean Airlines vs. Greek Organization of | Aegean Airlines vs. Motor Oil Corinth | Aegean Airlines vs. Alpha Services and |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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