Correlation Between Methode Electronics and Nok Airlines
Can any of the company-specific risk be diversified away by investing in both Methode Electronics 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 Methode Electronics and Nok Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Methode Electronics and Nok Airlines PCL, you can compare the effects of market volatilities on Methode Electronics 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 Methode Electronics with a short position of Nok Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Methode Electronics and Nok Airlines.
Diversification Opportunities for Methode Electronics and Nok Airlines
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Methode and Nok is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Methode 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 Methode Electronics 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 Methode 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 Methode Electronics i.e., Methode Electronics and Nok Airlines go up and down completely randomly.
Pair Corralation between Methode Electronics and Nok Airlines
If you would invest 920.00 in Methode Electronics on October 11, 2024 and sell it today you would earn a total of 260.00 from holding Methode Electronics or generate 28.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.44% |
| Values | Daily Returns |
Methode Electronics vs. Nok Airlines PCL
Performance |
| Timeline |
| Methode Electronics |
| Nok Airlines PCL |
Methode Electronics and Nok Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Methode Electronics and Nok Airlines
The main advantage of trading using opposite Methode Electronics and Nok Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Methode Electronics 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.| Methode Electronics vs. Peijia Medical Limited | Methode Electronics vs. SPECTRAL MEDICAL | Methode Electronics vs. Sumitomo Rubber Industries | Methode Electronics vs. Diamyd Medical AB |
| Nok Airlines vs. Richardson Electronics | Nok Airlines vs. STMICROELECTRONICS | Nok Airlines vs. Methode Electronics | Nok Airlines vs. Samsung Electronics 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |