Correlation Between Aegean Airlines and Intelligent Bio

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

Diversification Opportunities for Aegean Airlines and Intelligent Bio

0.64

Correlation Coefficient

Aegean Airlines  Intelligent Bio

Poor diversification

The 3 months correlation between Aegean and Intelligent is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and Intelligent Bio Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intelligent Bio Solutions 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 Intelligent Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intelligent Bio Solutions has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and Intelligent Bio go up and down completely randomly.

Pair Corralation between Aegean Airlines and Intelligent Bio

Assuming the 90 days horizon Aegean Airlines is expected to generate 1.72 times less return on investment than Intelligent Bio. But when comparing it to its historical volatility, Aegean Airlines SA is 4.28 times less risky than Intelligent Bio. It trades about 0.2 of its potential returns per unit of risk. Intelligent Bio Solutions is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  124.00  in Intelligent Bio Solutions on May 15, 2025 and sell it today you would earn a total of  24.00  from holding Intelligent Bio Solutions or generate 19.35% return on investment over 90 days.

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

Aegean Airlines SA  vs.  Intelligent Bio Solutions

Aegean Airlines SA

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Aegean Airlines SA are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Aegean Airlines reported solid returns over the last few months and may actually be approaching a breakup point.

Intelligent Bio Solutions

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Intelligent Bio Solutions are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady fundamental drivers, Intelligent Bio unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Aegean Airlines and Intelligent Bio

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

The idea behind Aegean Airlines SA and Intelligent Bio Solutions 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.