Correlation Between Air Transport and Nok Airlines
Can any of the company-specific risk be diversified away by investing in both Air Transport 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 Air Transport and Nok Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Air Transport Services and Nok Airlines Public, you can compare the effects of market volatilities on Air Transport 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 Air Transport with a short position of Nok Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Transport and Nok Airlines.
Diversification Opportunities for Air Transport and Nok Airlines
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Air and Nok is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Air Transport Services and Nok Airlines Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nok Airlines Public and Air Transport 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 Air Transport Services 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 Public has no effect on the direction of Air Transport i.e., Air Transport and Nok Airlines go up and down completely randomly.
Pair Corralation between Air Transport and Nok Airlines
If you would invest 1,720 in Air Transport Services on August 28, 2024 and sell it today you would earn a total of 475.00 from holding Air Transport Services or generate 27.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Air Transport Services vs. Nok Airlines Public
Performance |
| Timeline |
| Air Transport Services |
| Nok Airlines Public |
Air Transport and Nok Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Transport and Nok Airlines
The main advantage of trading using opposite Air Transport and Nok Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Transport 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.| Air Transport vs. Copa Holdings SA | Air Transport vs. SkyWest | Air Transport vs. Sun Country Airlines | Air Transport vs. Frontier Group Holdings |
| Nok Airlines vs. Luxfer Holdings PLC | Nok Airlines vs. X FAB Silicon Foundries | Nok Airlines vs. Air Transport Services | Nok Airlines vs. Ziff Davis |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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