Correlation Between Aegean Airlines and COMPUTERSHARE
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and COMPUTERSHARE 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 COMPUTERSHARE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aegean Airlines SA and COMPUTERSHARE, you can compare the effects of market volatilities on Aegean Airlines and COMPUTERSHARE 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 COMPUTERSHARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and COMPUTERSHARE.
Diversification Opportunities for Aegean Airlines and COMPUTERSHARE
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aegean and COMPUTERSHARE is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and COMPUTERSHARE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COMPUTERSHARE 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 SA are associated (or correlated) with COMPUTERSHARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COMPUTERSHARE has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and COMPUTERSHARE go up and down completely randomly.
Pair Corralation between Aegean Airlines and COMPUTERSHARE
Assuming the 90 days horizon Aegean Airlines is expected to generate 2.65 times less return on investment than COMPUTERSHARE. But when comparing it to its historical volatility, Aegean Airlines SA is 1.26 times less risky than COMPUTERSHARE. It trades about 0.11 of its potential returns per unit of risk. COMPUTERSHARE is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 1,840 in COMPUTERSHARE on November 18, 2024 and sell it today you would earn a total of 720.00 from holding COMPUTERSHARE or generate 39.13% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Aegean Airlines SA vs. COMPUTERSHARE
Performance |
Timeline |
Aegean Airlines SA |
COMPUTERSHARE |
Aegean Airlines and COMPUTERSHARE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aegean Airlines and COMPUTERSHARE
The main advantage of trading using opposite Aegean Airlines and COMPUTERSHARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, COMPUTERSHARE 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 COMPUTERSHARE will offset losses from the drop in COMPUTERSHARE's long position.Aegean Airlines vs. Easy Software AG | ||
Aegean Airlines vs. CyberArk Software | ||
Aegean Airlines vs. Fast Retailing Co | ||
Aegean Airlines vs. Unity Software |
COMPUTERSHARE vs. GRUPO CARSO A1 | ||
COMPUTERSHARE vs. Richardson Electronics | ||
COMPUTERSHARE vs. CARSALESCOM | ||
COMPUTERSHARE vs. Grupo Carso SAB |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Transaction History View history of all your transactions and understand their impact on performance | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |