Correlation Between Nok Airlines and Kaufman Broad
Can any of the company-specific risk be diversified away by investing in both Nok Airlines and Kaufman Broad 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 Kaufman Broad 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 Kaufman Broad SA, you can compare the effects of market volatilities on Nok Airlines and Kaufman Broad 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 Kaufman Broad. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nok Airlines and Kaufman Broad.
Diversification Opportunities for Nok Airlines and Kaufman Broad
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nok and Kaufman is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nok Airlines PCL and Kaufman Broad SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaufman Broad 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 Kaufman Broad. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaufman Broad SA has no effect on the direction of Nok Airlines i.e., Nok Airlines and Kaufman Broad go up and down completely randomly.
Pair Corralation between Nok Airlines and Kaufman Broad
If you would invest 2,416 in Kaufman Broad SA on November 6, 2024 and sell it today you would earn a total of 879.00 from holding Kaufman Broad SA or generate 36.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nok Airlines PCL vs. Kaufman Broad SA
Performance |
| Timeline |
| Nok Airlines PCL |
| Kaufman Broad SA |
Nok Airlines and Kaufman Broad Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nok Airlines and Kaufman Broad
The main advantage of trading using opposite Nok Airlines and Kaufman Broad positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nok Airlines position performs unexpectedly, Kaufman Broad 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 Kaufman Broad will offset losses from the drop in Kaufman Broad's long position.| Nok Airlines vs. Focus Home Interactive | Nok Airlines vs. Mitsui Chemicals | Nok Airlines vs. ADDUS HOMECARE | Nok Airlines vs. Pembina Pipeline Corp |
| Kaufman Broad vs. FORMPIPE SOFTWARE AB | Kaufman Broad vs. American Airlines Group | Kaufman Broad vs. SINGAPORE AIRLINES | Kaufman Broad vs. UPDATE SOFTWARE |
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 CEOs Directory module to screen CEOs from public companies around the world.
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