Correlation Between Cebu Air and PARKER
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By analyzing existing cross correlation between Cebu Air ADR and PARKER HANNIFIN P MEDIUM, you can compare the effects of market volatilities on Cebu Air and PARKER 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 PARKER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cebu Air and PARKER.
Diversification Opportunities for Cebu Air and PARKER
Average diversification
The 3 months correlation between Cebu and PARKER is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Cebu Air ADR and PARKER HANNIFIN P MEDIUM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PARKER HANNIFIN P 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 PARKER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PARKER HANNIFIN P has no effect on the direction of Cebu Air i.e., Cebu Air and PARKER go up and down completely randomly.
Pair Corralation between Cebu Air and PARKER
Assuming the 90 days horizon Cebu Air ADR is expected to under-perform the PARKER. In addition to that, Cebu Air is 15.12 times more volatile than PARKER HANNIFIN P MEDIUM. It trades about -0.03 of its total potential returns per unit of risk. PARKER HANNIFIN P MEDIUM is currently generating about 0.0 per unit of volatility. If you would invest 9,758 in PARKER HANNIFIN P MEDIUM on September 14, 2024 and sell it today you would lose (5.00) from holding PARKER HANNIFIN P MEDIUM or give up 0.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 87.73% |
| Values | Daily Returns |
Cebu Air ADR vs. PARKER HANNIFIN P MEDIUM
Performance |
| Timeline |
| Cebu Air ADR |
| PARKER HANNIFIN P |
Cebu Air and PARKER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cebu Air and PARKER
The main advantage of trading using opposite Cebu Air and PARKER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cebu Air position performs unexpectedly, PARKER 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 PARKER will offset losses from the drop in PARKER's long position.| Cebu Air vs. Old Republic International | Cebu Air vs. NuRAN Wireless | Cebu Air vs. Siriuspoint | Cebu Air vs. Assurant |
| PARKER vs. Aegon NV ADR | PARKER vs. Aspen Insurance Holdings | PARKER vs. Cincinnati Financial | PARKER vs. Cebu Air ADR |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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