Correlation Between Aegean Airlines and BAKRIE SUMATERA

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

Diversification Opportunities for Aegean Airlines and BAKRIE SUMATERA

0.46

Correlation Coefficient

Aegean Airlines  BAKRIE SUMATERA

Very weak diversification

The 3 months correlation between Aegean and BAKRIE is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and BAKRIE SUMATERA PL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BAKRIE SUMATERA PL 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 BAKRIE SUMATERA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BAKRIE SUMATERA PL has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and BAKRIE SUMATERA go up and down completely randomly.

Pair Corralation between Aegean Airlines and BAKRIE SUMATERA

Assuming the 90 days horizon Aegean Airlines is expected to generate 22.18 times less return on investment than BAKRIE SUMATERA. But when comparing it to its historical volatility, Aegean Airlines SA is 15.17 times less risky than BAKRIE SUMATERA. It trades about 0.12 of its potential returns per unit of risk. BAKRIE SUMATERA PL is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  0.20  in BAKRIE SUMATERA PL on April 23, 2025 and sell it today you would earn a total of  0.80  from holding BAKRIE SUMATERA PL or generate 400.0% return on investment over 90 days.

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

Aegean Airlines SA  vs.  BAKRIE SUMATERA PL

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.

BAKRIE SUMATERA PL

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in BAKRIE SUMATERA PL are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, BAKRIE SUMATERA unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Aegean Airlines and BAKRIE SUMATERA

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

The idea behind Aegean Airlines SA and BAKRIE SUMATERA PL 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.