Correlation Between Nok Airlines and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both Nok Airlines and Amkor Technology 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 Amkor Technology 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 Amkor Technology, you can compare the effects of market volatilities on Nok Airlines and Amkor Technology 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 Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nok Airlines and Amkor Technology.
Diversification Opportunities for Nok Airlines and Amkor Technology
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nok and Amkor is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nok Airlines PCL and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology 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 Amkor Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amkor Technology has no effect on the direction of Nok Airlines i.e., Nok Airlines and Amkor Technology go up and down completely randomly.
Pair Corralation between Nok Airlines and Amkor Technology
If you would invest 2,442 in Amkor Technology on September 1, 2024 and sell it today you would earn a total of 13.00 from holding Amkor Technology or generate 0.53% 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. Amkor Technology
Performance |
| Timeline |
| Nok Airlines PCL |
| Amkor Technology |
Nok Airlines and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nok Airlines and Amkor Technology
The main advantage of trading using opposite Nok Airlines and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nok Airlines position performs unexpectedly, Amkor Technology 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 Amkor Technology will offset losses from the drop in Amkor Technology's long position.| Nok Airlines vs. Apple Inc | Nok Airlines vs. Apple Inc | Nok Airlines vs. Apple Inc | Nok Airlines vs. Apple Inc |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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