Correlation Between Bannix Acquisition and Cebu Air
Can any of the company-specific risk be diversified away by investing in both Bannix Acquisition and Cebu Air 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 Bannix Acquisition and Cebu Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bannix Acquisition Corp and Cebu Air ADR, you can compare the effects of market volatilities on Bannix Acquisition and Cebu Air 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 Bannix Acquisition with a short position of Cebu Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bannix Acquisition and Cebu Air.
Diversification Opportunities for Bannix Acquisition and Cebu Air
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bannix and Cebu is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Bannix Acquisition Corp and Cebu Air ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cebu Air ADR and Bannix Acquisition 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 Bannix Acquisition Corp are associated (or correlated) with Cebu Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cebu Air ADR has no effect on the direction of Bannix Acquisition i.e., Bannix Acquisition and Cebu Air go up and down completely randomly.
Pair Corralation between Bannix Acquisition and Cebu Air
Assuming the 90 days horizon Bannix Acquisition Corp is expected to generate 39.07 times more return on investment than Cebu Air. However, Bannix Acquisition is 39.07 times more volatile than Cebu Air ADR. It trades about 0.14 of its potential returns per unit of risk. Cebu Air ADR is currently generating about -0.02 per unit of risk. If you would invest 4.74 in Bannix Acquisition Corp on August 30, 2024 and sell it today you would lose (2.55) from holding Bannix Acquisition Corp or give up 53.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 51.27% |
| Values | Daily Returns |
Bannix Acquisition Corp vs. Cebu Air ADR
Performance |
| Timeline |
| Bannix Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| Cebu Air ADR |
Bannix Acquisition and Cebu Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bannix Acquisition and Cebu Air
The main advantage of trading using opposite Bannix Acquisition and Cebu Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bannix Acquisition position performs unexpectedly, Cebu Air 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 Cebu Air will offset losses from the drop in Cebu Air's long position.| Bannix Acquisition vs. Relx PLC ADR | Bannix Acquisition vs. Tesla Inc | Bannix Acquisition vs. PACCAR Inc | Bannix Acquisition vs. Brunswick |
| Cebu Air vs. Finnair Oyj | Cebu Air vs. easyJet plc | Cebu Air vs. Norse Atlantic ASA | Cebu Air vs. AirAsia Group Berhad |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |