Correlation Between DALATA HOTEL and Nok Airlines
Can any of the company-specific risk be diversified away by investing in both DALATA HOTEL 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 DALATA HOTEL and Nok Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DALATA HOTEL and Nok Airlines PCL, you can compare the effects of market volatilities on DALATA HOTEL 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 DALATA HOTEL with a short position of Nok Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of DALATA HOTEL and Nok Airlines.
Diversification Opportunities for DALATA HOTEL and Nok Airlines
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DALATA and Nok is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding DALATA HOTEL 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 DALATA HOTEL 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 DALATA HOTEL 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 DALATA HOTEL i.e., DALATA HOTEL and Nok Airlines go up and down completely randomly.
Pair Corralation between DALATA HOTEL and Nok Airlines
If you would invest 421.00 in DALATA HOTEL on August 28, 2024 and sell it today you would lose (7.00) from holding DALATA HOTEL or give up 1.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.72% |
| Values | Daily Returns |
DALATA HOTEL vs. Nok Airlines PCL
Performance |
| Timeline |
| DALATA HOTEL |
| Nok Airlines PCL |
DALATA HOTEL and Nok Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DALATA HOTEL and Nok Airlines
The main advantage of trading using opposite DALATA HOTEL and Nok Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DALATA HOTEL 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.| DALATA HOTEL vs. Apple Inc | DALATA HOTEL vs. Apple Inc | DALATA HOTEL vs. Microsoft | DALATA HOTEL vs. Microsoft |
| Nok Airlines vs. Apple Inc | Nok Airlines vs. Apple Inc | Nok Airlines vs. Apple Inc | Nok Airlines vs. Apple Inc |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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