Correlation Between Aegean Airlines and Interlife General

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

Diversification Opportunities for Aegean Airlines and Interlife General

0.55

Correlation Coefficient

Aegean Airlines  Interlife General

Very weak diversification

The 3 months correlation between Aegean and Interlife is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and Interlife General Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Interlife General 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 Interlife General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Interlife General has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and Interlife General go up and down completely randomly.

Pair Corralation between Aegean Airlines and Interlife General

Assuming the 90 days trading horizon Aegean Airlines SA is expected to generate 1.39 times more return on investment than Interlife General. However, Aegean Airlines is 1.39 times more volatile than Interlife General Insurance. It trades about 0.07 of its potential returns per unit of risk. Interlife General Insurance is currently generating about 0.07 per unit of risk. If you would invest  1,180  in Aegean Airlines SA on April 25, 2025 and sell it today you would earn a total of  92.00  from holding Aegean Airlines SA or generate 7.8% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.41%
Values	Daily Returns

Aegean Airlines SA  vs.  Interlife General Insurance

Aegean Airlines SA

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Aegean Airlines SA are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Aegean Airlines may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Interlife General

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Interlife General Insurance are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Interlife General is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Aegean Airlines and Interlife General

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

The idea behind Aegean Airlines SA and Interlife General Insurance 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.