Correlation Between Cebu Air and Vista Land

Can any of the company-specific risk be diversified away by investing in both Cebu Air and Vista Land 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 Vista Land into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cebu Air and Vista Land and, you can compare the effects of market volatilities on Cebu Air and Vista Land 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 Vista Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cebu Air and Vista Land.

Diversification Opportunities for Cebu Air and Vista Land

-0.69

Correlation Coefficient

Cebu Air  Vista Land

Excellent diversification

The 3 months correlation between Cebu and Vista is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Cebu Air and Vista Land and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vista Land 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 are associated (or correlated) with Vista Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vista Land has no effect on the direction of Cebu Air i.e., Cebu Air and Vista Land go up and down completely randomly.

Pair Corralation between Cebu Air and Vista Land

Assuming the 90 days trading horizon Cebu Air is expected to generate 2.39 times less return on investment than Vista Land. In addition to that, Cebu Air is 1.06 times more volatile than Vista Land and. It trades about 0.01 of its total potential returns per unit of risk. Vista Land and is currently generating about 0.02 per unit of volatility. If you would invest  143.00  in Vista Land and on April 17, 2025 and sell it today you would earn a total of  8.00  from holding Vista Land and or generate 5.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	99.79%
Values	Daily Returns

Cebu Air  vs.  Vista Land and

Cebu Air

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Cebu Air are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak technical and fundamental indicators, Cebu Air may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Vista Land

Risk-Adjusted Performance

Very Weak

Over the last 90 days Vista Land and has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Cebu Air and Vista Land

The main advantage of trading using opposite Cebu Air and Vista Land positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cebu Air position performs unexpectedly, Vista Land 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 Vista Land will offset losses from the drop in Vista Land's long position.

The idea behind Cebu Air and Vista Land and pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.