Correlation Between Nok Airlines and MEITUAN UNSPADR/2B
Can any of the company-specific risk be diversified away by investing in both Nok Airlines and MEITUAN UNSPADR/2B 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 MEITUAN UNSPADR/2B 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 MEITUAN UNSPADR2B, you can compare the effects of market volatilities on Nok Airlines and MEITUAN UNSPADR/2B 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 MEITUAN UNSPADR/2B. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nok Airlines and MEITUAN UNSPADR/2B.
Diversification Opportunities for Nok Airlines and MEITUAN UNSPADR/2B
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nok and MEITUAN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nok Airlines PCL and MEITUAN UNSPADR2B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEITUAN UNSPADR/2B 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 MEITUAN UNSPADR/2B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MEITUAN UNSPADR/2B has no effect on the direction of Nok Airlines i.e., Nok Airlines and MEITUAN UNSPADR/2B go up and down completely randomly.
Pair Corralation between Nok Airlines and MEITUAN UNSPADR/2B
If you would invest 2,300 in MEITUAN UNSPADR2B on September 3, 2024 and sell it today you would earn a total of 1,780 from holding MEITUAN UNSPADR2B or generate 77.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Nok Airlines PCL vs. MEITUAN UNSPADR2B
Performance |
| Timeline |
| Nok Airlines PCL |
| MEITUAN UNSPADR/2B |
Nok Airlines and MEITUAN UNSPADR/2B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nok Airlines and MEITUAN UNSPADR/2B
The main advantage of trading using opposite Nok Airlines and MEITUAN UNSPADR/2B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nok Airlines position performs unexpectedly, MEITUAN UNSPADR/2B 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 MEITUAN UNSPADR/2B will offset losses from the drop in MEITUAN UNSPADR/2B's long position.| Nok Airlines vs. Apple Inc | Nok Airlines vs. Apple Inc | Nok Airlines vs. Apple Inc | Nok Airlines vs. Apple Inc |
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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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