Correlation Between AEGEAN AIRLINES and KTL GLOBAL

Can any of the company-specific risk be diversified away by investing in both AEGEAN AIRLINES and KTL GLOBAL 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 KTL GLOBAL into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AEGEAN AIRLINES and KTL GLOBAL, you can compare the effects of market volatilities on AEGEAN AIRLINES and KTL GLOBAL 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 KTL GLOBAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of AEGEAN AIRLINES and KTL GLOBAL.

Diversification Opportunities for AEGEAN AIRLINES and KTL GLOBAL

0.0

Correlation Coefficient

AEGEAN AIRLINES  KTL GLOBAL

Pay attention - limited upside

The 3 months correlation between AEGEAN and KTL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AEGEAN AIRLINES and KTL GLOBAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KTL GLOBAL 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 KTL GLOBAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KTL GLOBAL has no effect on the direction of AEGEAN AIRLINES i.e., AEGEAN AIRLINES and KTL GLOBAL go up and down completely randomly.

Pair Corralation between AEGEAN AIRLINES and KTL GLOBAL

If you would invest  5.52  in KTL GLOBAL on September 12, 2024 and sell it today you would earn a total of  0.00  from holding KTL GLOBAL or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

AEGEAN AIRLINES  vs.  KTL GLOBAL

AEGEAN AIRLINES

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AEGEAN AIRLINES has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

KTL GLOBAL

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days KTL GLOBAL has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, KTL GLOBAL is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with AEGEAN AIRLINES and KTL GLOBAL

The main advantage of trading using opposite AEGEAN AIRLINES and KTL GLOBAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AEGEAN AIRLINES position performs unexpectedly, KTL GLOBAL 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 KTL GLOBAL will offset losses from the drop in KTL GLOBAL's long position.

The idea behind AEGEAN AIRLINES and KTL GLOBAL pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.