Correlation Between Nok Airlines and CAL-MAINE FOODS
Can any of the company-specific risk be diversified away by investing in both Nok Airlines and CAL-MAINE FOODS 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 CAL-MAINE FOODS 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 CAL MAINE FOODS, you can compare the effects of market volatilities on Nok Airlines and CAL-MAINE FOODS 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 CAL-MAINE FOODS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nok Airlines and CAL-MAINE FOODS.
Diversification Opportunities for Nok Airlines and CAL-MAINE FOODS
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nok and CAL-MAINE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nok Airlines PCL and CAL MAINE FOODS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAL MAINE FOODS 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 CAL-MAINE FOODS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAL MAINE FOODS has no effect on the direction of Nok Airlines i.e., Nok Airlines and CAL-MAINE FOODS go up and down completely randomly.
Pair Corralation between Nok Airlines and CAL-MAINE FOODS
If you would invest 9,960 in CAL MAINE FOODS on October 13, 2024 and sell it today you would earn a total of 255.00 from holding CAL MAINE FOODS or generate 2.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Nok Airlines PCL vs. CAL MAINE FOODS
Performance |
| Timeline |
| Nok Airlines PCL |
| CAL MAINE FOODS |
Nok Airlines and CAL-MAINE FOODS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nok Airlines and CAL-MAINE FOODS
The main advantage of trading using opposite Nok Airlines and CAL-MAINE FOODS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nok Airlines position performs unexpectedly, CAL-MAINE FOODS 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 CAL-MAINE FOODS will offset losses from the drop in CAL-MAINE FOODS's long position.| Nok Airlines vs. JD SPORTS FASH | Nok Airlines vs. ePlay Digital | Nok Airlines vs. CVB Financial Corp | Nok Airlines vs. USWE SPORTS AB |
| CAL-MAINE FOODS vs. DAIRY FARM INTL | CAL-MAINE FOODS vs. FARM 51 GROUP | CAL-MAINE FOODS vs. Casio Computer CoLtd | CAL-MAINE FOODS vs. X FAB Silicon Foundries |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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