Correlation Between LPKF Laser and Nok Airlines
Can any of the company-specific risk be diversified away by investing in both LPKF Laser 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 LPKF Laser and Nok Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LPKF Laser Electronics and Nok Airlines PCL, you can compare the effects of market volatilities on LPKF Laser 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 LPKF Laser with a short position of Nok Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of LPKF Laser and Nok Airlines.
Diversification Opportunities for LPKF Laser and Nok Airlines
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between LPKF and Nok is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding LPKF Laser Electronics 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 LPKF Laser 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 LPKF Laser Electronics 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 LPKF Laser i.e., LPKF Laser and Nok Airlines go up and down completely randomly.
Pair Corralation between LPKF Laser and Nok Airlines
If you would invest 877.00 in LPKF Laser Electronics on November 3, 2024 and sell it today you would earn a total of 13.00 from holding LPKF Laser Electronics or generate 1.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LPKF Laser Electronics vs. Nok Airlines PCL
Performance |
| Timeline |
| LPKF Laser Electronics |
| Nok Airlines PCL |
LPKF Laser and Nok Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LPKF Laser and Nok Airlines
The main advantage of trading using opposite LPKF Laser and Nok Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LPKF Laser 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.| LPKF Laser vs. Methode Electronics | LPKF Laser vs. SHIP HEALTHCARE HLDGINC | LPKF Laser vs. Renesas Electronics | LPKF Laser vs. WESANA HEALTH HOLD |
| Nok Airlines vs. China National Building | Nok Airlines vs. Tower One Wireless | Nok Airlines vs. Infrastrutture Wireless Italiane | Nok Airlines vs. CENTURIA OFFICE REIT |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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