Correlation Between Global Crossing and Nok Airlines
Can any of the company-specific risk be diversified away by investing in both Global Crossing 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 Global Crossing and Nok Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Crossing Airlines and Nok Airlines Public, you can compare the effects of market volatilities on Global Crossing 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 Global Crossing with a short position of Nok Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Crossing and Nok Airlines.
Diversification Opportunities for Global Crossing and Nok Airlines
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Global and Nok is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Global Crossing Airlines 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 Global Crossing 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 Global Crossing Airlines 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 Global Crossing i.e., Global Crossing and Nok Airlines go up and down completely randomly.
Pair Corralation between Global Crossing and Nok Airlines
If you would invest 43.00 in Global Crossing Airlines on October 21, 2024 and sell it today you would earn a total of 6.00 from holding Global Crossing Airlines or generate 13.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Crossing Airlines vs. Nok Airlines Public
Performance |
| Timeline |
| Global Crossing Airlines |
| Nok Airlines Public |
Global Crossing and Nok Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Crossing and Nok Airlines
The main advantage of trading using opposite Global Crossing and Nok Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Crossing 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.| Global Crossing vs. Finnair Oyj | Global Crossing vs. easyJet plc | Global Crossing vs. Norse Atlantic ASA | Global Crossing vs. Air New Zealand |
| Nok Airlines vs. Seadrill Limited | Nok Airlines vs. Noble plc | Nok Airlines vs. Flutter Entertainment plc | Nok Airlines vs. Sphere Entertainment Co |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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