Correlation Between Aegean Airlines and Caseys General

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

Diversification Opportunities for Aegean Airlines and Caseys General

0.18

Correlation Coefficient

Aegean Airlines  Caseys General

Average diversification

The 3 months correlation between Aegean and Caseys is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and Caseys General Stores in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caseys General Stores 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 Caseys General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caseys General Stores has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and Caseys General go up and down completely randomly.

Pair Corralation between Aegean Airlines and Caseys General

Assuming the 90 days horizon Aegean Airlines is expected to generate 3.59 times less return on investment than Caseys General. In addition to that, Aegean Airlines is 1.18 times more volatile than Caseys General Stores. It trades about 0.02 of its total potential returns per unit of risk. Caseys General Stores is currently generating about 0.08 per unit of volatility. If you would invest  22,361  in Caseys General Stores on April 17, 2025 and sell it today you would earn a total of  22,439  from holding Caseys General Stores or generate 100.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Aegean Airlines SA  vs.  Caseys General Stores

Aegean Airlines SA

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Aegean Airlines SA are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Aegean Airlines reported solid returns over the last few months and may actually be approaching a breakup point.

Caseys General Stores

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Caseys General Stores are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Caseys General unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Aegean Airlines and Caseys General

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

The idea behind Aegean Airlines SA and Caseys General Stores 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.