Correlation Between Impinj and Nok Airlines
Can any of the company-specific risk be diversified away by investing in both Impinj and Nok Airlines 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 Impinj and Nok Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Impinj Inc and Nok Airlines PCL, you can compare the effects of market volatilities on Impinj and Nok Airlines 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 Impinj with a short position of Nok Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impinj and Nok Airlines.
Diversification Opportunities for Impinj and Nok Airlines
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Impinj and Nok is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Impinj Inc and Nok Airlines PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nok Airlines PCL and Impinj 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 Impinj Inc are associated (or correlated) with Nok Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nok Airlines PCL has no effect on the direction of Impinj i.e., Impinj and Nok Airlines go up and down completely randomly.
Pair Corralation between Impinj and Nok Airlines
If you would invest 2.50 in Nok Airlines PCL on October 10, 2024 and sell it today you would earn a total of 0.00 from holding Nok Airlines PCL or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Impinj Inc vs. Nok Airlines PCL
Performance |
| Timeline |
| Impinj Inc |
| Nok Airlines PCL |
Impinj and Nok Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Impinj and Nok Airlines
The main advantage of trading using opposite Impinj and Nok Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Impinj position performs unexpectedly, Nok Airlines 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 Nok Airlines will offset losses from the drop in Nok Airlines' long position.The idea behind Impinj Inc and Nok Airlines PCL 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.| Nok Airlines vs. Reinsurance Group of | Nok Airlines vs. Safety Insurance Group | Nok Airlines vs. United Insurance Holdings | Nok Airlines vs. SOLSTAD OFFSHORE NK |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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