Correlation Between Nok Airlines and Agnico Eagle
Can any of the company-specific risk be diversified away by investing in both Nok Airlines and Agnico Eagle 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 Agnico Eagle 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 Agnico Eagle Mines, you can compare the effects of market volatilities on Nok Airlines and Agnico Eagle 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 Agnico Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nok Airlines and Agnico Eagle.
Diversification Opportunities for Nok Airlines and Agnico Eagle
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nok and Agnico is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nok Airlines PCL and Agnico Eagle Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agnico Eagle Mines 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 Agnico Eagle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agnico Eagle Mines has no effect on the direction of Nok Airlines i.e., Nok Airlines and Agnico Eagle go up and down completely randomly.
Pair Corralation between Nok Airlines and Agnico Eagle
If you would invest 7,996 in Agnico Eagle Mines on November 3, 2024 and sell it today you would earn a total of 970.00 from holding Agnico Eagle Mines or generate 12.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Nok Airlines PCL vs. Agnico Eagle Mines
Performance |
| Timeline |
| Nok Airlines PCL |
| Agnico Eagle Mines |
Nok Airlines and Agnico Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nok Airlines and Agnico Eagle
The main advantage of trading using opposite Nok Airlines and Agnico Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nok Airlines position performs unexpectedly, Agnico Eagle 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 Agnico Eagle will offset losses from the drop in Agnico Eagle's long position.| Nok Airlines vs. MICRONIC MYDATA | Nok Airlines vs. TERADATA | Nok Airlines vs. UNIQA INSURANCE GR | Nok Airlines vs. Datadog |
| Agnico Eagle vs. UNIVERSAL DISPLAY | Agnico Eagle vs. Genertec Universal Medical | Agnico Eagle vs. PLAYSTUDIOS A DL 0001 | Agnico Eagle vs. PLAYMATES TOYS |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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