Correlation Between Lincoln Electric and Nok Airlines
Can any of the company-specific risk be diversified away by investing in both Lincoln Electric 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 Lincoln Electric and Nok Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lincoln Electric Holdings and Nok Airlines Public, you can compare the effects of market volatilities on Lincoln Electric 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 Lincoln Electric with a short position of Nok Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lincoln Electric and Nok Airlines.
Diversification Opportunities for Lincoln Electric and Nok Airlines
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lincoln and Nok is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lincoln Electric Holdings 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 Lincoln Electric 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 Lincoln Electric Holdings 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 Lincoln Electric i.e., Lincoln Electric and Nok Airlines go up and down completely randomly.
Pair Corralation between Lincoln Electric and Nok Airlines
If you would invest 18,924 in Lincoln Electric Holdings on October 25, 2024 and sell it today you would earn a total of 938.00 from holding Lincoln Electric Holdings or generate 4.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lincoln Electric Holdings vs. Nok Airlines Public
Performance |
| Timeline |
| Lincoln Electric Holdings |
| Nok Airlines Public |
Lincoln Electric and Nok Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lincoln Electric and Nok Airlines
The main advantage of trading using opposite Lincoln Electric and Nok Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lincoln Electric 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.| Lincoln Electric vs. Kennametal | Lincoln Electric vs. Toro Co | Lincoln Electric vs. Snap On | Lincoln Electric vs. RBC Bearings Incorporated |
| Nok Airlines vs. Monster Beverage Corp | Nok Airlines vs. Willamette Valley Vineyards | Nok Airlines vs. Oatly Group AB | Nok Airlines vs. BOS Better Online |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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