Correlation Between Norwegian Air and CIFI Holdings
Can any of the company-specific risk be diversified away by investing in both Norwegian Air and CIFI Holdings 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 Norwegian Air and CIFI Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Norwegian Air Shuttle and CIFI Holdings Co, you can compare the effects of market volatilities on Norwegian Air and CIFI Holdings 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 Norwegian Air with a short position of CIFI Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Norwegian Air and CIFI Holdings.
Diversification Opportunities for Norwegian Air and CIFI Holdings
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Norwegian and CIFI is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Norwegian Air Shuttle and CIFI Holdings Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIFI Holdings and Norwegian 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 Norwegian Air Shuttle are associated (or correlated) with CIFI Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIFI Holdings has no effect on the direction of Norwegian Air i.e., Norwegian Air and CIFI Holdings go up and down completely randomly.
Pair Corralation between Norwegian Air and CIFI Holdings
Assuming the 90 days horizon Norwegian Air is expected to generate 3.88 times less return on investment than CIFI Holdings. But when comparing it to its historical volatility, Norwegian Air Shuttle is 3.42 times less risky than CIFI Holdings. It trades about 0.03 of its potential returns per unit of risk. CIFI Holdings Co is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 15.00 in CIFI Holdings Co on September 3, 2024 and sell it today you would lose (11.85) from holding CIFI Holdings Co or give up 79.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Norwegian Air Shuttle vs. CIFI Holdings Co
Performance |
| Timeline |
| Norwegian Air Shuttle |
| CIFI Holdings |
Norwegian Air and CIFI Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Norwegian Air and CIFI Holdings
The main advantage of trading using opposite Norwegian Air and CIFI Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Norwegian Air position performs unexpectedly, CIFI Holdings 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 CIFI Holdings will offset losses from the drop in CIFI Holdings' long position.| Norwegian Air vs. SHIP HEALTHCARE HLDGINC | Norwegian Air vs. GALENA MINING LTD | Norwegian Air vs. Tianjin Capital Environmental | Norwegian Air vs. BlueScope Steel Limited |
| CIFI Holdings vs. HF SINCLAIR P | CIFI Holdings vs. Japan Post Insurance | CIFI Holdings vs. Wizz Air Holdings | CIFI Holdings vs. Norwegian Air Shuttle |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |