Correlation Between 207597EG6 and Cebu Air
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By analyzing existing cross correlation between CONNECTICUT LT PWR and Cebu Air ADR, you can compare the effects of market volatilities on 207597EG6 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 207597EG6 with a short position of Cebu Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of 207597EG6 and Cebu Air.
Diversification Opportunities for 207597EG6 and Cebu Air
Very weak diversification
The 3 months correlation between 207597EG6 and Cebu is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding CONNECTICUT LT PWR 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 207597EG6 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 CONNECTICUT LT PWR 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 207597EG6 i.e., 207597EG6 and Cebu Air go up and down completely randomly.
Pair Corralation between 207597EG6 and Cebu Air
Assuming the 90 days trading horizon CONNECTICUT LT PWR is expected to generate 0.71 times more return on investment than Cebu Air. However, CONNECTICUT LT PWR is 1.4 times less risky than Cebu Air. It trades about -0.12 of its potential returns per unit of risk. Cebu Air ADR is currently generating about -0.22 per unit of risk. If you would invest 8,622 in CONNECTICUT LT PWR on September 4, 2024 and sell it today you would lose (334.00) from holding CONNECTICUT LT PWR or give up 3.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 66.67% |
| Values | Daily Returns |
CONNECTICUT LT PWR vs. Cebu Air ADR
Performance |
| Timeline |
| CONNECTICUT LT PWR |
| Cebu Air ADR |
207597EG6 and Cebu Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 207597EG6 and Cebu Air
The main advantage of trading using opposite 207597EG6 and Cebu Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 207597EG6 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.| 207597EG6 vs. Pintec Technology Holdings | 207597EG6 vs. Univest Pennsylvania | 207597EG6 vs. Hurco Companies | 207597EG6 vs. AmTrust Financial Services |
| Cebu Air vs. Enersys | Cebu Air vs. Hurco Companies | Cebu Air vs. LithiumBank Resources Corp | Cebu Air vs. Inflection Point Acquisition |
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.
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