Correlation Between Aegean Airlines and Everest Consolidator

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

Diversification Opportunities for Aegean Airlines and Everest Consolidator

-0.21

Correlation Coefficient

Aegean Airlines  Everest Consolidator

Very good diversification

The 3 months correlation between Aegean and Everest is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and Everest Consolidator Acquisiti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Everest Consolidator 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 Everest Consolidator. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Everest Consolidator has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and Everest Consolidator go up and down completely randomly.

Pair Corralation between Aegean Airlines and Everest Consolidator

Assuming the 90 days horizon Aegean Airlines SA is expected to under-perform the Everest Consolidator. But the pink sheet apears to be less risky and, when comparing its historical volatility, Aegean Airlines SA is 1.57 times less risky than Everest Consolidator. The pink sheet trades about -0.12 of its potential returns per unit of risk. The Everest Consolidator Acquisition is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  1,121  in Everest Consolidator Acquisition on September 17, 2024 and sell it today you would lose (18.00) from holding Everest Consolidator Acquisition or give up 1.61% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

Aegean Airlines SA  vs.  Everest Consolidator Acquisiti

Aegean Airlines SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aegean Airlines SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Everest Consolidator

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Everest Consolidator Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Everest Consolidator is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Aegean Airlines and Everest Consolidator

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

The idea behind Aegean Airlines SA and Everest Consolidator Acquisition 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.