Correlation Between Digi International and Nok Airlines
Can any of the company-specific risk be diversified away by investing in both Digi International 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 Digi International and Nok Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Digi International and Nok Airlines Public, you can compare the effects of market volatilities on Digi International 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 Digi International with a short position of Nok Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digi International and Nok Airlines.
Diversification Opportunities for Digi International and Nok Airlines
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Digi and Nok is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Digi International 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 Digi International 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 Digi International 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 Digi International i.e., Digi International and Nok Airlines go up and down completely randomly.
Pair Corralation between Digi International and Nok Airlines
If you would invest 3,322 in Digi International on September 12, 2024 and sell it today you would earn a total of 24.50 from holding Digi International or generate 0.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Digi International vs. Nok Airlines Public
Performance |
| Timeline |
| Digi International |
| Nok Airlines Public |
Digi International and Nok Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Digi International and Nok Airlines
The main advantage of trading using opposite Digi International and Nok Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digi International 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.| Digi International vs. Victory Integrity Smallmid Cap | Digi International vs. Hilton Worldwide Holdings | Digi International vs. NVIDIA | Digi International vs. JPMorgan Chase Co |
| Nok Airlines vs. Finnair Oyj | Nok Airlines vs. easyJet plc | Nok Airlines vs. Norse Atlantic ASA | Nok Airlines vs. Air New Zealand |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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