Correlation Between Cebu Air and Suntrust Home

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

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

Diversification Opportunities for Cebu Air and Suntrust Home

-0.2

Correlation Coefficient

Cebu Air  Suntrust Home

Good diversification

The 3 months correlation between Cebu and Suntrust is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Cebu Air Preferred and Suntrust Home Developers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suntrust Home Developers 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 Preferred are associated (or correlated) with Suntrust Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suntrust Home Developers has no effect on the direction of Cebu Air i.e., Cebu Air and Suntrust Home go up and down completely randomly.

Pair Corralation between Cebu Air and Suntrust Home

Assuming the 90 days trading horizon Cebu Air Preferred is expected to generate 0.6 times more return on investment than Suntrust Home. However, Cebu Air Preferred is 1.68 times less risky than Suntrust Home. It trades about 0.1 of its potential returns per unit of risk. Suntrust Home Developers is currently generating about 0.02 per unit of risk. If you would invest  3,660  in Cebu Air Preferred on April 21, 2025 and sell it today you would earn a total of  350.00  from holding Cebu Air Preferred or generate 9.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Cebu Air Preferred  vs.  Suntrust Home Developers

Cebu Air Preferred

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Cebu Air Preferred are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak fundamental drivers, Cebu Air may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Suntrust Home Developers

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Suntrust Home Developers are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, Suntrust Home is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Cebu Air and Suntrust Home

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

The idea behind Cebu Air Preferred and Suntrust Home Developers 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.