Correlation Between CF Industries and Cebu Air
Can any of the company-specific risk be diversified away by investing in both CF Industries 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 CF Industries and Cebu Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CF Industries Holdings and Cebu Air ADR, you can compare the effects of market volatilities on CF Industries 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 CF Industries with a short position of Cebu Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of CF Industries and Cebu Air.
Diversification Opportunities for CF Industries and Cebu Air
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CF Industries and Cebu is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CF Industries Holdings 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 CF Industries 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 CF Industries Holdings 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 CF Industries i.e., CF Industries and Cebu Air go up and down completely randomly.
Pair Corralation between CF Industries and Cebu Air
If you would invest 185.00 in Cebu Air ADR on November 27, 2024 and sell it today you would earn a total of 0.00 from holding Cebu Air ADR or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
CF Industries Holdings vs. Cebu Air ADR
Performance |
| Timeline |
| CF Industries Holdings |
| Cebu Air ADR |
CF Industries and Cebu Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CF Industries and Cebu Air
The main advantage of trading using opposite CF Industries and Cebu Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CF Industries 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.| CF Industries vs. Nutrien | CF Industries vs. Intrepid Potash | CF Industries vs. Corteva | CF Industries vs. ICL Israel Chemicals |
| Cebu Air vs. Highway Holdings Limited | Cebu Air vs. Sysco | Cebu Air vs. Insteel Industries | Cebu Air vs. Tyson Foods |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |