Correlation Between Aegean Airlines and FONIX MOBILE

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

Diversification Opportunities for Aegean Airlines and FONIX MOBILE

0.25

Correlation Coefficient

Aegean Airlines  FONIX MOBILE

Modest diversification

The 3 months correlation between Aegean and FONIX is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and FONIX MOBILE PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FONIX MOBILE 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 FONIX MOBILE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FONIX MOBILE PLC has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and FONIX MOBILE go up and down completely randomly.

Pair Corralation between Aegean Airlines and FONIX MOBILE

Assuming the 90 days horizon Aegean Airlines SA is expected to generate 1.19 times more return on investment than FONIX MOBILE. However, Aegean Airlines is 1.19 times more volatile than FONIX MOBILE PLC. It trades about 0.12 of its potential returns per unit of risk. FONIX MOBILE PLC is currently generating about 0.11 per unit of risk. If you would invest  1,074  in Aegean Airlines SA on April 21, 2025 and sell it today you would earn a total of  186.00  from holding Aegean Airlines SA or generate 17.32% 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.  FONIX MOBILE PLC

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 uncertain basic indicators, Aegean Airlines reported solid returns over the last few months and may actually be approaching a breakup point.

FONIX MOBILE PLC

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in FONIX MOBILE PLC are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, FONIX MOBILE reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Aegean Airlines and FONIX MOBILE

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

The idea behind Aegean Airlines SA and FONIX MOBILE PLC 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 Transaction History module to view history of all your transactions and understand their impact on performance.