Correlation Between GBS Software and Aegean Airlines
Can any of the company-specific risk be diversified away by investing in both GBS Software and Aegean Airlines 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 GBS Software and Aegean Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GBS Software AG and Aegean Airlines SA, you can compare the effects of market volatilities on GBS Software and Aegean Airlines 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 GBS Software with a short position of Aegean Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of GBS Software and Aegean Airlines.
Diversification Opportunities for GBS Software and Aegean Airlines
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between GBS and Aegean is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding GBS Software AG and Aegean Airlines SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aegean Airlines SA and GBS Software 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 GBS Software AG are associated (or correlated) with Aegean Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aegean Airlines SA has no effect on the direction of GBS Software i.e., GBS Software and Aegean Airlines go up and down completely randomly.
Pair Corralation between GBS Software and Aegean Airlines
Assuming the 90 days trading horizon GBS Software is expected to generate 1.64 times less return on investment than Aegean Airlines. But when comparing it to its historical volatility, GBS Software AG is 1.04 times less risky than Aegean Airlines. It trades about 0.04 of its potential returns per unit of risk. Aegean Airlines SA is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 537.00 in Aegean Airlines SA on October 10, 2024 and sell it today you would earn a total of 485.00 from holding Aegean Airlines SA or generate 90.32% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
GBS Software AG vs. Aegean Airlines SA
Performance |
Timeline |
GBS Software AG |
Aegean Airlines SA |
GBS Software and Aegean Airlines Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GBS Software and Aegean Airlines
The main advantage of trading using opposite GBS Software and Aegean Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GBS Software position performs unexpectedly, Aegean Airlines 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 Aegean Airlines will offset losses from the drop in Aegean Airlines' long position.GBS Software vs. QURATE RETAIL INC | GBS Software vs. Costco Wholesale Corp | GBS Software vs. BJs Restaurants | GBS Software vs. Burlington Stores |
Aegean Airlines vs. AECOM TECHNOLOGY | Aegean Airlines vs. DXC Technology Co | Aegean Airlines vs. MidCap Financial Investment | Aegean Airlines vs. FIRST SAVINGS FINL |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |