Correlation Between Niko Semiconductor and Air Asia
Can any of the company-specific risk be diversified away by investing in both Niko Semiconductor and Air Asia 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 Niko Semiconductor and Air Asia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Niko Semiconductor Co and Air Asia Co, you can compare the effects of market volatilities on Niko Semiconductor and Air Asia 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 Niko Semiconductor with a short position of Air Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Niko Semiconductor and Air Asia.
Diversification Opportunities for Niko Semiconductor and Air Asia
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Niko and Air is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Niko Semiconductor Co and Air Asia Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Asia and Niko Semiconductor 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 Niko Semiconductor Co are associated (or correlated) with Air Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air Asia has no effect on the direction of Niko Semiconductor i.e., Niko Semiconductor and Air Asia go up and down completely randomly.
Pair Corralation between Niko Semiconductor and Air Asia
Assuming the 90 days trading horizon Niko Semiconductor Co is expected to generate 1.54 times more return on investment than Air Asia. However, Niko Semiconductor is 1.54 times more volatile than Air Asia Co. It trades about 0.16 of its potential returns per unit of risk. Air Asia Co is currently generating about -0.16 per unit of risk. If you would invest 4,550 in Niko Semiconductor Co on September 1, 2024 and sell it today you would earn a total of 345.00 from holding Niko Semiconductor Co or generate 7.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Niko Semiconductor Co vs. Air Asia Co
Performance |
| Timeline |
| Niko Semiconductor |
| Air Asia |
Niko Semiconductor and Air Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Niko Semiconductor and Air Asia
The main advantage of trading using opposite Niko Semiconductor and Air Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Niko Semiconductor position performs unexpectedly, Air Asia 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 Air Asia will offset losses from the drop in Air Asia's long position.| Niko Semiconductor vs. Excelliance MOS | Niko Semiconductor vs. Sinopower Semiconductor | Niko Semiconductor vs. Advanced Power Electronics | Niko Semiconductor vs. Anpec Electronics |
| Air Asia vs. Weltrend Semiconductor | Air Asia vs. Realtek Semiconductor Corp | Air Asia vs. EnTie Commercial Bank | Air Asia vs. Niko Semiconductor Co |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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