Correlation Between Gold Road and Aegean Airlines

Can any of the company-specific risk be diversified away by investing in both Gold Road and Aegean Airlines 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 Gold Road and Aegean Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Gold Road Resources and Aegean Airlines SA, you can compare the effects of market volatilities on Gold Road and Aegean Airlines 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 Gold Road with a short position of Aegean Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gold Road and Aegean Airlines.

Diversification Opportunities for Gold Road and Aegean Airlines

-0.14

Correlation Coefficient

Gold Road  Aegean Airlines

Good diversification

The 3 months correlation between Gold and Aegean is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Gold Road Resources and Aegean Airlines SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aegean Airlines SA and Gold Road 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 Gold Road Resources are associated (or correlated) with Aegean Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aegean Airlines SA has no effect on the direction of Gold Road i.e., Gold Road and Aegean Airlines go up and down completely randomly.

Pair Corralation between Gold Road and Aegean Airlines

Assuming the 90 days horizon Gold Road Resources is expected to under-perform the Aegean Airlines. But the stock apears to be less risky and, when comparing its historical volatility, Gold Road Resources is 1.73 times less risky than Aegean Airlines. The stock trades about -0.07 of its potential returns per unit of risk. The Aegean Airlines SA is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  1,151  in Aegean Airlines SA on May 7, 2025 and sell it today you would earn a total of  93.00  from holding Aegean Airlines SA or generate 8.08% return on investment over 90 days.

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

Gold Road Resources  vs.  Aegean Airlines SA

Gold Road Resources

Risk-Adjusted Performance

Very Weak

Over the last 90 days Gold Road Resources has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Gold Road is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

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. Despite nearly fragile basic indicators, Aegean Airlines may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Gold Road and Aegean Airlines

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

The idea behind Gold Road Resources and Aegean Airlines SA 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.

Check out your portfolio center.

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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.