Correlation Between Cebu Air and Airthings ASA
Can any of the company-specific risk be diversified away by investing in both Cebu Air and Airthings ASA 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 Cebu Air and Airthings ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cebu Air ADR and Airthings ASA, you can compare the effects of market volatilities on Cebu Air and Airthings ASA 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 Airthings ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cebu Air and Airthings ASA.
Diversification Opportunities for Cebu Air and Airthings ASA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cebu and Airthings is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cebu Air ADR and Airthings ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Airthings ASA 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 Airthings ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Airthings ASA has no effect on the direction of Cebu Air i.e., Cebu Air and Airthings ASA go up and down completely randomly.
Pair Corralation between Cebu Air and Airthings ASA
If you would invest 185.00 in Cebu Air ADR on August 13, 2025 and sell it today you would earn a total of 35.00 from holding Cebu Air ADR or generate 18.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cebu Air ADR vs. Airthings ASA
Performance |
| Timeline |
| Cebu Air ADR |
| Airthings ASA |
Cebu Air and Airthings ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cebu Air and Airthings ASA
The main advantage of trading using opposite Cebu Air and Airthings ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cebu Air position performs unexpectedly, Airthings ASA 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 Airthings ASA will offset losses from the drop in Airthings ASA's long position.| Cebu Air vs. Nok Airlines Public | Cebu Air vs. Harbor Diversified | Cebu Air vs. Global Crossing Airlines | Cebu Air vs. YTO Express Holdings |
| Airthings ASA vs. AFC Energy plc | Airthings ASA vs. Smartcool Systems | Airthings ASA vs. DBM Global | Airthings ASA vs. Butler National Corp |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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