Correlation Between LIFEWAY FOODS and Nok Airlines
Can any of the company-specific risk be diversified away by investing in both LIFEWAY FOODS 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 LIFEWAY FOODS and Nok Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LIFEWAY FOODS and Nok Airlines PCL, you can compare the effects of market volatilities on LIFEWAY FOODS 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 LIFEWAY FOODS with a short position of Nok Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of LIFEWAY FOODS and Nok Airlines.
Diversification Opportunities for LIFEWAY FOODS and Nok Airlines
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between LIFEWAY and Nok is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding LIFEWAY FOODS 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 LIFEWAY FOODS 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 LIFEWAY FOODS 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 LIFEWAY FOODS i.e., LIFEWAY FOODS and Nok Airlines go up and down completely randomly.
Pair Corralation between LIFEWAY FOODS and Nok Airlines
If you would invest 530.00 in LIFEWAY FOODS on September 25, 2024 and sell it today you would earn a total of 1,590 from holding LIFEWAY FOODS or generate 300.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LIFEWAY FOODS vs. Nok Airlines PCL
Performance |
| Timeline |
| LIFEWAY FOODS |
| Nok Airlines PCL |
LIFEWAY FOODS and Nok Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LIFEWAY FOODS and Nok Airlines
The main advantage of trading using opposite LIFEWAY FOODS and Nok Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LIFEWAY FOODS 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.| LIFEWAY FOODS vs. Apple Inc | LIFEWAY FOODS vs. Apple Inc | LIFEWAY FOODS vs. Apple Inc | LIFEWAY FOODS 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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