Correlation Between Cathay Pacific and Cathay Pacific
Can any of the company-specific risk be diversified away by investing in both Cathay Pacific and Cathay Pacific 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 Cathay Pacific and Cathay Pacific into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cathay Pacific Airways and Cathay Pacific Airways, you can compare the effects of market volatilities on Cathay Pacific and Cathay Pacific 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 Cathay Pacific with a short position of Cathay Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cathay Pacific and Cathay Pacific.
Diversification Opportunities for Cathay Pacific and Cathay Pacific
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cathay and Cathay is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cathay Pacific Airways and Cathay Pacific Airways in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cathay Pacific Airways and Cathay Pacific 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 Cathay Pacific Airways are associated (or correlated) with Cathay Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cathay Pacific Airways has no effect on the direction of Cathay Pacific i.e., Cathay Pacific and Cathay Pacific go up and down completely randomly.
Pair Corralation between Cathay Pacific and Cathay Pacific
If you would invest 439.00 in Cathay Pacific Airways on January 16, 2025 and sell it today you would earn a total of 116.00 from holding Cathay Pacific Airways or generate 26.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Cathay Pacific Airways vs. Cathay Pacific Airways
Performance |
| Timeline |
| Cathay Pacific Airways |
| Cathay Pacific Airways |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Cathay Pacific and Cathay Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cathay Pacific and Cathay Pacific
The main advantage of trading using opposite Cathay Pacific and Cathay Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cathay Pacific position performs unexpectedly, Cathay Pacific 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 Cathay Pacific will offset losses from the drop in Cathay Pacific's long position.| Cathay Pacific vs. Singapore Airlines | Cathay Pacific vs. International Consolidated Airlines | Cathay Pacific vs. Air France KLM | Cathay Pacific vs. Qantas Airways Ltd |
| Cathay Pacific vs. Finnair Oyj | Cathay Pacific vs. easyJet plc | Cathay Pacific vs. Norse Atlantic ASA | Cathay Pacific 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |