Correlation Between AEGEAN AIRLINES and Nucletron Electronic

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

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

Diversification Opportunities for AEGEAN AIRLINES and Nucletron Electronic

0.0

Correlation Coefficient

AEGEAN AIRLINES  Nucletron Electronic

Pay attention - limited upside

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

Pair Corralation between AEGEAN AIRLINES and Nucletron Electronic

Assuming the 90 days trading horizon AEGEAN AIRLINES is expected to under-perform the Nucletron Electronic. In addition to that, AEGEAN AIRLINES is 5.04 times more volatile than Nucletron Electronic Aktiengesellschaft. It trades about 0.0 of its total potential returns per unit of risk. Nucletron Electronic Aktiengesellschaft is currently generating about 0.06 per unit of volatility. If you would invest  724.00  in Nucletron Electronic Aktiengesellschaft on September 13, 2024 and sell it today you would earn a total of  36.00  from holding Nucletron Electronic Aktiengesellschaft or generate 4.97% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.6%
Values	Daily Returns

AEGEAN AIRLINES  vs.  Nucletron Electronic Aktienges

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.

Nucletron Electronic

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nucletron Electronic Aktiengesellschaft has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Nucletron Electronic is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with AEGEAN AIRLINES and Nucletron Electronic

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

The idea behind AEGEAN AIRLINES and Nucletron Electronic Aktiengesellschaft 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.

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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.