Correlation Between Gerdau SA and Nok Airlines
Can any of the company-specific risk be diversified away by investing in both Gerdau SA 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 Gerdau SA and Nok Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gerdau SA ADR and Nok Airlines Public, you can compare the effects of market volatilities on Gerdau SA 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 Gerdau SA with a short position of Nok Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gerdau SA and Nok Airlines.
Diversification Opportunities for Gerdau SA and Nok Airlines
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gerdau and Nok is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gerdau SA ADR 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 Gerdau SA 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 Gerdau SA ADR 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 Gerdau SA i.e., Gerdau SA and Nok Airlines go up and down completely randomly.
Pair Corralation between Gerdau SA and Nok Airlines
If you would invest 9.50 in Nok Airlines Public on October 11, 2024 and sell it today you would earn a total of 0.00 from holding Nok Airlines Public or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Gerdau SA ADR vs. Nok Airlines Public
Performance |
| Timeline |
| Gerdau SA ADR |
| Nok Airlines Public |
Gerdau SA and Nok Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gerdau SA and Nok Airlines
The main advantage of trading using opposite Gerdau SA and Nok Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gerdau SA 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.| Gerdau SA vs. Usinas Siderurgicas de | Gerdau SA vs. Ternium SA ADR | Gerdau SA vs. ArcelorMittal SA ADR | Gerdau SA vs. POSCO Holdings |
| Nok Airlines vs. Gerdau SA ADR | Nok Airlines vs. Worthington Steel | Nok Airlines vs. Summit Materials | Nok Airlines vs. Allegheny Technologies Incorporated |
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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