Correlation Between Nok Airlines and Invion
Can any of the company-specific risk be diversified away by investing in both Nok Airlines and Invion 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 Invion 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 Invion Limited, you can compare the effects of market volatilities on Nok Airlines and Invion 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 Invion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nok Airlines and Invion.
Diversification Opportunities for Nok Airlines and Invion
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nok and Invion is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nok Airlines PCL and Invion Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invion Limited 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 Invion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invion Limited has no effect on the direction of Nok Airlines i.e., Nok Airlines and Invion go up and down completely randomly.
Pair Corralation between Nok Airlines and Invion
If you would invest 35.00 in Invion Limited on October 11, 2024 and sell it today you would lose (17.00) from holding Invion Limited or give up 48.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nok Airlines PCL vs. Invion Limited
Performance |
| Timeline |
| Nok Airlines PCL |
| Invion Limited |
Nok Airlines and Invion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nok Airlines and Invion
The main advantage of trading using opposite Nok Airlines and Invion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nok Airlines position performs unexpectedly, Invion 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 Invion will offset losses from the drop in Invion's long position.| Nok Airlines vs. Reinsurance Group of | Nok Airlines vs. Safety Insurance Group | Nok Airlines vs. United Insurance Holdings | Nok Airlines vs. SOLSTAD OFFSHORE NK |
| Invion vs. Nok Airlines PCL | Invion vs. Gol Intelligent Airlines | Invion vs. Nippon Steel | Invion vs. MOUNT GIBSON IRON |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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