Correlation Between Boston Beer and Nok Airlines
Can any of the company-specific risk be diversified away by investing in both Boston Beer 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 Boston Beer and Nok Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Boston Beer and Nok Airlines PCL, you can compare the effects of market volatilities on Boston Beer 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 Boston Beer with a short position of Nok Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Beer and Nok Airlines.
Diversification Opportunities for Boston Beer and Nok Airlines
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Boston and Nok is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding The Boston Beer 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 Boston Beer 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 The Boston Beer 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 Boston Beer i.e., Boston Beer and Nok Airlines go up and down completely randomly.
Pair Corralation between Boston Beer and Nok Airlines
If you would invest 2.50 in Nok Airlines PCL on October 26, 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 |
The Boston Beer vs. Nok Airlines PCL
Performance |
| Timeline |
| Boston Beer |
| Nok Airlines PCL |
Boston Beer and Nok Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Beer and Nok Airlines
The main advantage of trading using opposite Boston Beer and Nok Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Beer 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.| Boston Beer vs. Planet Fitness | Boston Beer vs. US Physical Therapy | Boston Beer vs. AEGEAN AIRLINES | Boston Beer vs. HEALTHSTREAM |
| Nok Airlines vs. The Boston Beer | Nok Airlines vs. United Breweries Co | Nok Airlines vs. S E BANKEN A | Nok Airlines vs. Suntory Beverage Food |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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