Correlation Between Aegean Airlines and Jackson Financial

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

Diversification Opportunities for Aegean Airlines and Jackson Financial

-0.08

Correlation Coefficient

Aegean Airlines  Jackson Financial

Good diversification

The 3 months correlation between Aegean and Jackson is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and Jackson Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jackson Financial 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 Jackson Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jackson Financial has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and Jackson Financial go up and down completely randomly.

Pair Corralation between Aegean Airlines and Jackson Financial

Assuming the 90 days horizon Aegean Airlines SA is expected to generate 3.21 times more return on investment than Jackson Financial. However, Aegean Airlines is 3.21 times more volatile than Jackson Financial. It trades about 0.23 of its potential returns per unit of risk. Jackson Financial is currently generating about 0.11 per unit of risk. If you would invest  1,159  in Aegean Airlines SA on May 7, 2025 and sell it today you would earn a total of  295.00  from holding Aegean Airlines SA or generate 25.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	96.88%
Values	Daily Returns

Aegean Airlines SA  vs.  Jackson Financial

Aegean Airlines SA

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Aegean Airlines SA are ranked lower than 18 (%) 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.

Jackson Financial

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Jackson Financial are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Jackson Financial is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Aegean Airlines and Jackson Financial

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

The idea behind Aegean Airlines SA and Jackson Financial 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 Valuation module to check real value of public entities based on technical and fundamental data.