Correlation Between Victorias Secret and Aegean Airlines
Can any of the company-specific risk be diversified away by investing in both Victorias Secret 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 Victorias Secret and Aegean Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Victorias Secret Co and Aegean Airlines SA, you can compare the effects of market volatilities on Victorias Secret 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 Victorias Secret with a short position of Aegean Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Victorias Secret and Aegean Airlines.
Diversification Opportunities for Victorias Secret and Aegean Airlines
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Victorias and Aegean is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Victorias Secret Co 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 Victorias Secret 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 Victorias Secret Co 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 Victorias Secret i.e., Victorias Secret and Aegean Airlines go up and down completely randomly.
Pair Corralation between Victorias Secret and Aegean Airlines
Given the investment horizon of 90 days Victorias Secret is expected to generate 1.18 times less return on investment than Aegean Airlines. In addition to that, Victorias Secret is 1.66 times more volatile than Aegean Airlines SA. It trades about 0.04 of its total potential returns per unit of risk. Aegean Airlines SA is currently generating about 0.07 per unit of volatility. If you would invest 512.00 in Aegean Airlines SA on September 23, 2024 and sell it today you would earn a total of 513.00 from holding Aegean Airlines SA or generate 100.2% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 99.8% |
Values | Daily Returns |
Victorias Secret Co vs. Aegean Airlines SA
Performance |
Timeline |
Victorias Secret |
Aegean Airlines SA |
Victorias Secret and Aegean Airlines Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Victorias Secret and Aegean Airlines
The main advantage of trading using opposite Victorias Secret and Aegean Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Victorias Secret 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.Victorias Secret vs. Macys Inc | ||
Victorias Secret vs. Wayfair | ||
Victorias Secret vs. 1StdibsCom | ||
Victorias Secret vs. AutoNation |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |