Correlation Between Aegean Airlines and Amarin PLC
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and Amarin PLC 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 Amarin PLC 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 Amarin PLC, you can compare the effects of market volatilities on Aegean Airlines and Amarin PLC 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 Amarin PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and Amarin PLC.
Diversification Opportunities for Aegean Airlines and Amarin PLC
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aegean and Amarin is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and Amarin PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amarin PLC 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 Amarin PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amarin PLC has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and Amarin PLC go up and down completely randomly.
Pair Corralation between Aegean Airlines and Amarin PLC
Assuming the 90 days horizon Aegean Airlines SA is expected to generate 0.32 times more return on investment than Amarin PLC. However, Aegean Airlines SA is 3.15 times less risky than Amarin PLC. It trades about 0.08 of its potential returns per unit of risk. Amarin PLC is currently generating about 0.01 per unit of risk. If you would invest 1,355 in Aegean Airlines SA on March 14, 2024 and sell it today you would earn a total of 106.00 from holding Aegean Airlines SA or generate 7.82% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Aegean Airlines SA vs. Amarin PLC
Performance |
Timeline |
Aegean Airlines SA |
Amarin PLC |
Aegean Airlines and Amarin PLC Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aegean Airlines and Amarin PLC
The main advantage of trading using opposite Aegean Airlines and Amarin PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, Amarin PLC 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 Amarin PLC will offset losses from the drop in Amarin PLC's long position.Aegean Airlines vs. Kiwi Property Group | Aegean Airlines vs. Fibra UNO | Aegean Airlines vs. Presidio Property Trust | Aegean Airlines vs. British Land |
Amarin PLC vs. Scilex Holding | Amarin PLC vs. Biogen Inc | Amarin PLC vs. Gilead Sciences | Amarin PLC vs. AstraZeneca PLC ADR |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |