Correlation Between Nok Airlines and Haier Smart
Can any of the company-specific risk be diversified away by investing in both Nok Airlines and Haier Smart 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 Haier Smart 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 Haier Smart Home, you can compare the effects of market volatilities on Nok Airlines and Haier Smart 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 Haier Smart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nok Airlines and Haier Smart.
Diversification Opportunities for Nok Airlines and Haier Smart
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nok and Haier is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nok Airlines PCL and Haier Smart Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haier Smart Home 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 Haier Smart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haier Smart Home has no effect on the direction of Nok Airlines i.e., Nok Airlines and Haier Smart go up and down completely randomly.
Pair Corralation between Nok Airlines and Haier Smart
If you would invest 173.00 in Haier Smart Home on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Haier Smart Home or generate 0.0% 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. Haier Smart Home
Performance |
| Timeline |
| Nok Airlines PCL |
| Haier Smart Home |
Nok Airlines and Haier Smart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nok Airlines and Haier Smart
The main advantage of trading using opposite Nok Airlines and Haier Smart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nok Airlines position performs unexpectedly, Haier Smart 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 Haier Smart will offset losses from the drop in Haier Smart's long position.| Nok Airlines vs. Apple Inc | Nok Airlines vs. Apple Inc | Nok Airlines vs. Apple Inc | Nok Airlines vs. Apple Inc |
| Haier Smart vs. Jupiter Fund Management | Haier Smart vs. Alfa Financial Software | Haier Smart vs. Sqs Software Quality | Haier Smart vs. ATOSS 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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