Correlation Between Aegean Airlines and Harvard Apparatus

Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and Harvard Apparatus 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 Harvard Apparatus 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 Harvard Apparatus Regenerative, you can compare the effects of market volatilities on Aegean Airlines and Harvard Apparatus 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 Harvard Apparatus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and Harvard Apparatus.

Diversification Opportunities for Aegean Airlines and Harvard Apparatus

0.88

Correlation Coefficient

Aegean Airlines  Harvard Apparatus

Very poor diversification

The 3 months correlation between Aegean and Harvard is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and Harvard Apparatus Regenerative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harvard Apparatus 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 Harvard Apparatus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harvard Apparatus has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and Harvard Apparatus go up and down completely randomly.

Pair Corralation between Aegean Airlines and Harvard Apparatus

Assuming the 90 days horizon Aegean Airlines SA is expected to generate 0.62 times more return on investment than Harvard Apparatus. However, Aegean Airlines SA is 1.6 times less risky than Harvard Apparatus. It trades about 0.06 of its potential returns per unit of risk. Harvard Apparatus Regenerative is currently generating about -0.05 per unit of risk. If you would invest  555.00  in Aegean Airlines SA on October 4, 2024 and sell it today you would earn a total of  470.00  from holding Aegean Airlines SA or generate 84.68% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	26.36%
Values	Daily Returns

Aegean Airlines SA  vs.  Harvard Apparatus Regenerative

Aegean Airlines SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aegean Airlines SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Harvard Apparatus

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Harvard Apparatus Regenerative has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Harvard Apparatus is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Aegean Airlines and Harvard Apparatus

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

The idea behind Aegean Airlines SA and Harvard Apparatus Regenerative 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.