Correlation Between Cebu Air and Norse Atlantic
Can any of the company-specific risk be diversified away by investing in both Cebu Air and Norse Atlantic 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 Norse Atlantic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cebu Air and Norse Atlantic ASA, you can compare the effects of market volatilities on Cebu Air and Norse Atlantic 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 Norse Atlantic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cebu Air and Norse Atlantic.
Diversification Opportunities for Cebu Air and Norse Atlantic
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cebu and Norse is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cebu Air and Norse Atlantic ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Norse Atlantic ASA 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 Norse Atlantic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Norse Atlantic ASA has no effect on the direction of Cebu Air i.e., Cebu Air and Norse Atlantic go up and down completely randomly.
Pair Corralation between Cebu Air and Norse Atlantic
If you would invest 16.00 in Norse Atlantic ASA on August 28, 2024 and sell it today you would earn a total of 18.00 from holding Norse Atlantic ASA or generate 112.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cebu Air vs. Norse Atlantic ASA
Performance |
| Timeline |
| Cebu Air |
| Norse Atlantic ASA |
Cebu Air and Norse Atlantic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cebu Air and Norse Atlantic
The main advantage of trading using opposite Cebu Air and Norse Atlantic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cebu Air position performs unexpectedly, Norse Atlantic 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 Norse Atlantic will offset losses from the drop in Norse Atlantic'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 |
| Norse Atlantic vs. Finnair Oyj | Norse Atlantic vs. easyJet plc | Norse Atlantic vs. Air New Zealand | Norse Atlantic 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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