Correlation Between Aegean Airlines and Roadrunner Transportation

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

Diversification Opportunities for Aegean Airlines and Roadrunner Transportation

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Aegean and Roadrunner is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aegean Airlines SA and Roadrunner Transportation Syst in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roadrunner Transportation 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 Roadrunner Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roadrunner Transportation has no effect on the direction of Aegean Airlines i.e., Aegean Airlines and Roadrunner Transportation go up and down completely randomly.

Pair Corralation between Aegean Airlines and Roadrunner Transportation

If you would invest  225.00  in Roadrunner Transportation Systems on September 9, 2025 and sell it today you would lose (1.00) from holding Roadrunner Transportation Systems or give up 0.44% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Aegean Airlines SA  vs.  Roadrunner Transportation Syst

 Performance 
       Timeline  
Aegean Airlines SA 

Risk-Adjusted Performance

Weakest

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

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Roadrunner Transportation Systems are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Roadrunner Transportation is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Aegean Airlines and Roadrunner Transportation Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Aegean Airlines and Roadrunner Transportation

The main advantage of trading using opposite Aegean Airlines and Roadrunner Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aegean Airlines position performs unexpectedly, Roadrunner Transportation 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 Roadrunner Transportation will offset losses from the drop in Roadrunner Transportation's long position.
The idea behind Aegean Airlines SA and Roadrunner Transportation Systems 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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.

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