Correlation Between AEGEAN AIRLINES and SAFEROADS HLDGS

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

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

Diversification Opportunities for AEGEAN AIRLINES and SAFEROADS HLDGS

0.0

Correlation Coefficient

AEGEAN AIRLINES  SAFEROADS HLDGS

Pay attention - limited upside

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

Pair Corralation between AEGEAN AIRLINES and SAFEROADS HLDGS

If you would invest  982.00  in AEGEAN AIRLINES on December 24, 2024 and sell it today you would earn a total of  183.00  from holding AEGEAN AIRLINES or generate 18.64% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

AEGEAN AIRLINES  vs.  SAFEROADS HLDGS

AEGEAN AIRLINES

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in AEGEAN AIRLINES are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, AEGEAN AIRLINES exhibited solid returns over the last few months and may actually be approaching a breakup point.

SAFEROADS HLDGS

Risk-Adjusted Performance

Very Weak

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

Pair Trading with AEGEAN AIRLINES and SAFEROADS HLDGS

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

The idea behind AEGEAN AIRLINES and SAFEROADS HLDGS 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.