Correlation Between Nok Airlines and Major Drilling
Can any of the company-specific risk be diversified away by investing in both Nok Airlines and Major Drilling 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 Major Drilling 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 Major Drilling Group, you can compare the effects of market volatilities on Nok Airlines and Major Drilling 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 Major Drilling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nok Airlines and Major Drilling.
Diversification Opportunities for Nok Airlines and Major Drilling
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nok and Major is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nok Airlines PCL and Major Drilling Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Major Drilling Group 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 Major Drilling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Major Drilling Group has no effect on the direction of Nok Airlines i.e., Nok Airlines and Major Drilling go up and down completely randomly.
Pair Corralation between Nok Airlines and Major Drilling
If you would invest 2.50 in Nok Airlines PCL on December 24, 2024 and sell it today you would earn a total of 0.00 from holding Nok Airlines PCL or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Nok Airlines PCL vs. Major Drilling Group
Performance |
| Timeline |
| Nok Airlines PCL |
| Major Drilling Group |
Nok Airlines and Major Drilling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nok Airlines and Major Drilling
The main advantage of trading using opposite Nok Airlines and Major Drilling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nok Airlines position performs unexpectedly, Major Drilling 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 Major Drilling will offset losses from the drop in Major Drilling's long position.| Nok Airlines vs. bet at home AG | Nok Airlines vs. American Homes 4 | Nok Airlines vs. ANGI Homeservices | Nok Airlines vs. PPHE HOTEL GROUP |
| Major Drilling vs. CanSino Biologics | Major Drilling vs. Autohome ADR | Major Drilling vs. Stag Industrial | Major Drilling vs. KENEDIX OFFICE INV |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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