Correlation Between Aegean Airlines and INTER CARS
Can any of the company-specific risk be diversified away by investing in both Aegean Airlines and INTER CARS 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 INTER CARS 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 INTER CARS SA, you can compare the effects of market volatilities on Aegean Airlines and INTER CARS 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 INTER CARS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aegean Airlines and INTER CARS.
Diversification Opportunities for Aegean Airlines and INTER CARS
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Aegean and INTER is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and INTER CARS SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTER CARS SA 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 INTER CARS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTER CARS SA has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and INTER CARS go up and down completely randomly.
Pair Corralation between Aegean Airlines and INTER CARS
Assuming the 90 days horizon Aegean Airlines SA is expected to generate 1.06 times more return on investment than INTER CARS. However, Aegean Airlines is 1.06 times more volatile than INTER CARS SA. It trades about 0.12 of its potential returns per unit of risk. INTER CARS SA is currently generating about 0.06 per unit of risk. If you would invest 1,084 in Aegean Airlines SA on April 23, 2025 and sell it today you would earn a total of 176.00 from holding Aegean Airlines SA or generate 16.24% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Aegean Airlines SA vs. INTER CARS SA
Performance |
Timeline |
Aegean Airlines SA |
INTER CARS SA |
Aegean Airlines and INTER CARS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aegean Airlines and INTER CARS
The main advantage of trading using opposite Aegean Airlines and INTER CARS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, INTER CARS 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 INTER CARS will offset losses from the drop in INTER CARS's long position.Aegean Airlines vs. Adtalem Global Education | Aegean Airlines vs. Xinhua Winshare Publishing | Aegean Airlines vs. Singapore Telecommunications Limited | Aegean Airlines vs. G8 EDUCATION |
INTER CARS vs. Boyd Gaming | INTER CARS vs. WillScot Mobile Mini | INTER CARS vs. Iridium Communications | INTER CARS vs. OURGAME INTHOLDL 00005 |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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