Correlation Between AEGEAN AIRLINES and EPlay Digital
Can any of the company-specific risk be diversified away by investing in both AEGEAN AIRLINES and EPlay Digital 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 AEGEAN AIRLINES and EPlay Digital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AEGEAN AIRLINES and ePlay Digital, you can compare the effects of market volatilities on AEGEAN AIRLINES and EPlay Digital 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 AEGEAN AIRLINES with a short position of EPlay Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of AEGEAN AIRLINES and EPlay Digital.
Diversification Opportunities for AEGEAN AIRLINES and EPlay Digital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AEGEAN and EPlay is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AEGEAN AIRLINES and ePlay Digital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ePlay Digital and AEGEAN AIRLINES 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 AEGEAN AIRLINES are associated (or correlated) with EPlay Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ePlay Digital has no effect on the direction of AEGEAN AIRLINES i.e., AEGEAN AIRLINES and EPlay Digital go up and down completely randomly.
Pair Corralation between AEGEAN AIRLINES and EPlay Digital
If you would invest 991.00 in AEGEAN AIRLINES on October 12, 2024 and sell it today you would earn a total of 40.00 from holding AEGEAN AIRLINES or generate 4.04% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
AEGEAN AIRLINES vs. ePlay Digital
Performance |
Timeline |
AEGEAN AIRLINES |
ePlay Digital |
AEGEAN AIRLINES and EPlay Digital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AEGEAN AIRLINES and EPlay Digital
The main advantage of trading using opposite AEGEAN AIRLINES and EPlay Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AEGEAN AIRLINES position performs unexpectedly, EPlay Digital 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 EPlay Digital will offset losses from the drop in EPlay Digital's long position.AEGEAN AIRLINES vs. TERADATA | AEGEAN AIRLINES vs. Automatic Data Processing | AEGEAN AIRLINES vs. Q2M Managementberatung AG | AEGEAN AIRLINES vs. MICRONIC MYDATA |
EPlay Digital vs. Kingdee International Software | EPlay Digital vs. ON SEMICONDUCTOR | EPlay Digital vs. AEGEAN AIRLINES | EPlay Digital vs. United Airlines Holdings |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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