Correlation Between BII Railway and Nok Airlines
Can any of the company-specific risk be diversified away by investing in both BII Railway 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 BII Railway and Nok Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BII Railway Transportation and Nok Airlines PCL, you can compare the effects of market volatilities on BII Railway 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 BII Railway with a short position of Nok Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of BII Railway and Nok Airlines.
Diversification Opportunities for BII Railway and Nok Airlines
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BII and Nok is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BII Railway Transportation 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 BII Railway 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 BII Railway Transportation 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 BII Railway i.e., BII Railway and Nok Airlines go up and down completely randomly.
Pair Corralation between BII Railway and Nok Airlines
If you would invest 2.80 in BII Railway Transportation on November 8, 2024 and sell it today you would earn a total of 0.00 from holding BII Railway Transportation or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
BII Railway Transportation vs. Nok Airlines PCL
Performance |
| Timeline |
| BII Railway Transpor |
| Nok Airlines PCL |
BII Railway and Nok Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BII Railway and Nok Airlines
The main advantage of trading using opposite BII Railway and Nok Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BII Railway 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.| BII Railway vs. Accenture plc | BII Railway vs. International Business Machines | BII Railway vs. International Business Machines | BII Railway vs. Capgemini SE |
| Nok Airlines vs. AGNC INVESTMENT | Nok Airlines vs. Diversified Healthcare Trust | Nok Airlines vs. MHP Hotel AG | Nok Airlines vs. Wyndham Hotels Resorts |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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