Correlation Between Nok Airlines and Aedas Homes
Can any of the company-specific risk be diversified away by investing in both Nok Airlines and Aedas Homes 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 Nok Airlines and Aedas Homes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nok Airlines PCL and Aedas Homes SA, you can compare the effects of market volatilities on Nok Airlines and Aedas Homes 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 Nok Airlines with a short position of Aedas Homes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nok Airlines and Aedas Homes.
Diversification Opportunities for Nok Airlines and Aedas Homes
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nok and Aedas is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nok Airlines PCL and Aedas Homes SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aedas Homes SA and Nok Airlines 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 Nok Airlines PCL are associated (or correlated) with Aedas Homes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aedas Homes SA has no effect on the direction of Nok Airlines i.e., Nok Airlines and Aedas Homes go up and down completely randomly.
Pair Corralation between Nok Airlines and Aedas Homes
If you would invest 1,051 in Aedas Homes SA on October 13, 2024 and sell it today you would earn a total of 1,484 from holding Aedas Homes SA or generate 141.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Nok Airlines PCL vs. Aedas Homes SA
Performance |
| Timeline |
| Nok Airlines PCL |
| Aedas Homes SA |
Nok Airlines and Aedas Homes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nok Airlines and Aedas Homes
The main advantage of trading using opposite Nok Airlines and Aedas Homes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nok Airlines position performs unexpectedly, Aedas Homes 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 Aedas Homes will offset losses from the drop in Aedas Homes' long position.| Nok Airlines vs. JD SPORTS FASH | Nok Airlines vs. ePlay Digital | Nok Airlines vs. CVB Financial Corp | Nok Airlines vs. USWE SPORTS AB |
| Aedas Homes vs. International Consolidated Airlines | Aedas Homes vs. Corporate Office Properties | Aedas Homes vs. Aegean Airlines SA | Aedas Homes vs. Nok Airlines PCL |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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