Correlation Between Cebu Air and APPLE
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By analyzing existing cross correlation between Cebu Air ADR and APPLE INC 245, you can compare the effects of market volatilities on Cebu Air and APPLE 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 APPLE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cebu Air and APPLE.
Diversification Opportunities for Cebu Air and APPLE
Very weak diversification
The 3 months correlation between Cebu and APPLE is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Cebu Air ADR and APPLE INC 245 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APPLE INC 245 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 ADR are associated (or correlated) with APPLE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APPLE INC 245 has no effect on the direction of Cebu Air i.e., Cebu Air and APPLE go up and down completely randomly.
Pair Corralation between Cebu Air and APPLE
Assuming the 90 days horizon Cebu Air ADR is expected to under-perform the APPLE. In addition to that, Cebu Air is 19.7 times more volatile than APPLE INC 245. It trades about -0.03 of its total potential returns per unit of risk. APPLE INC 245 is currently generating about 0.05 per unit of volatility. If you would invest 9,434 in APPLE INC 245 on September 3, 2024 and sell it today you would earn a total of 279.00 from holding APPLE INC 245 or generate 2.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
Cebu Air ADR vs. APPLE INC 245
Performance |
| Timeline |
| Cebu Air ADR |
| APPLE INC 245 |
Cebu Air and APPLE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cebu Air and APPLE
The main advantage of trading using opposite Cebu Air and APPLE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cebu Air position performs unexpectedly, APPLE 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 APPLE will offset losses from the drop in APPLE's long position.| Cebu Air vs. Finnair Oyj | Cebu Air vs. easyJet plc | Cebu Air vs. Norse Atlantic ASA | Cebu Air vs. Air New Zealand |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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