Correlation Between Cebu Air and Finnair Oyj
Can any of the company-specific risk be diversified away by investing in both Cebu Air and Finnair Oyj 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 Cebu Air and Finnair Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cebu Air and Finnair Oyj, you can compare the effects of market volatilities on Cebu Air and Finnair Oyj 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 Cebu Air with a short position of Finnair Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cebu Air and Finnair Oyj.
Diversification Opportunities for Cebu Air and Finnair Oyj
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cebu and Finnair is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cebu Air and Finnair Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Finnair Oyj and Cebu Air 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 Cebu Air are associated (or correlated) with Finnair Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Finnair Oyj has no effect on the direction of Cebu Air i.e., Cebu Air and Finnair Oyj go up and down completely randomly.
Pair Corralation between Cebu Air and Finnair Oyj
If you would invest 1.20 in Cebu Air on August 27, 2024 and sell it today you would earn a total of 0.00 from holding Cebu Air or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cebu Air vs. Finnair Oyj
Performance |
| Timeline |
| Cebu Air |
| Finnair Oyj |
Cebu Air and Finnair Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cebu Air and Finnair Oyj
The main advantage of trading using opposite Cebu Air and Finnair Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cebu Air position performs unexpectedly, Finnair Oyj 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 Finnair Oyj will offset losses from the drop in Finnair Oyj's long position.| Cebu Air vs. Air France KLM SA | Cebu Air vs. easyJet plc | Cebu Air vs. Norse Atlantic ASA | Cebu Air vs. Air China Limited |
| Finnair Oyj vs. easyJet plc | Finnair Oyj vs. Norse Atlantic ASA | Finnair Oyj vs. Air New Zealand | Finnair Oyj vs. Air China Limited |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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