Correlation Between H FARM and Nok Airlines
Can any of the company-specific risk be diversified away by investing in both H FARM 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 H FARM and Nok Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between H FARM SPA and Nok Airlines PCL, you can compare the effects of market volatilities on H FARM 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 H FARM with a short position of Nok Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of H FARM and Nok Airlines.
Diversification Opportunities for H FARM and Nok Airlines
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 5JQ and Nok is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding H FARM SPA 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 H FARM 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 H FARM SPA 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 H FARM i.e., H FARM and Nok Airlines go up and down completely randomly.
Pair Corralation between H FARM and Nok Airlines
If you would invest 2.50 in Nok Airlines PCL on August 25, 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 |
H FARM SPA vs. Nok Airlines PCL
Performance |
| Timeline |
| H FARM SPA |
| Nok Airlines PCL |
H FARM and Nok Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with H FARM and Nok Airlines
The main advantage of trading using opposite H FARM and Nok Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if H FARM 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.| H FARM vs. The Bank of | H FARM vs. Ares Management Corp | H FARM vs. Superior Plus Corp | H FARM vs. NMI Holdings |
| Nok Airlines vs. TYSON FOODS A | Nok Airlines vs. H FARM SPA | Nok Airlines vs. JJ SNACK FOODS | Nok Airlines vs. Astral Foods Limited |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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