Correlation Between AEGEAN AIRLINES and PG +

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Can any of the company-specific risk be diversified away by investing in both AEGEAN AIRLINES and PG + 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 PG + into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AEGEAN AIRLINES and PG E P6, you can compare the effects of market volatilities on AEGEAN AIRLINES and PG + 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 PG +. Check out your portfolio center. Please also check ongoing floating volatility patterns of AEGEAN AIRLINES and PG +.

Diversification Opportunities for AEGEAN AIRLINES and PG +

-0.71
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between AEGEAN and PCG6 is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding AEGEAN AIRLINES and PG E P6 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PG E P6 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 PG +. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PG E P6 has no effect on the direction of AEGEAN AIRLINES i.e., AEGEAN AIRLINES and PG + go up and down completely randomly.

Pair Corralation between AEGEAN AIRLINES and PG +

Assuming the 90 days trading horizon AEGEAN AIRLINES is expected to generate 0.75 times more return on investment than PG +. However, AEGEAN AIRLINES is 1.34 times less risky than PG +. It trades about 0.17 of its potential returns per unit of risk. PG E P6 is currently generating about -0.09 per unit of risk. If you would invest  971.00  in AEGEAN AIRLINES on October 6, 2024 and sell it today you would earn a total of  32.00  from holding AEGEAN AIRLINES or generate 3.3% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy94.44%
ValuesDaily Returns

AEGEAN AIRLINES  vs.  PG E P6

 Performance 
       Timeline  
AEGEAN AIRLINES 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
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 rather sound basic indicators, AEGEAN AIRLINES is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.
PG E P6 

Risk-Adjusted Performance

3 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in PG E P6 are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable technical and fundamental indicators, PG + is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

AEGEAN AIRLINES and PG + Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with AEGEAN AIRLINES and PG +

The main advantage of trading using opposite AEGEAN AIRLINES and PG + positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AEGEAN AIRLINES position performs unexpectedly, PG + 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 PG + will offset losses from the drop in PG +'s long position.
The idea behind AEGEAN AIRLINES and PG E P6 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.

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