Correlation Between Nok Airlines and Commonwealth Bank
Can any of the company-specific risk be diversified away by investing in both Nok Airlines and Commonwealth Bank 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 Commonwealth Bank 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 Commonwealth Bank of, you can compare the effects of market volatilities on Nok Airlines and Commonwealth Bank 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 Commonwealth Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nok Airlines and Commonwealth Bank.
Diversification Opportunities for Nok Airlines and Commonwealth Bank
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nok and Commonwealth is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nok Airlines PCL and Commonwealth Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Commonwealth Bank 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 Commonwealth Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Commonwealth Bank has no effect on the direction of Nok Airlines i.e., Nok Airlines and Commonwealth Bank go up and down completely randomly.
Pair Corralation between Nok Airlines and Commonwealth Bank
If you would invest 8,724 in Commonwealth Bank of on October 29, 2024 and sell it today you would earn a total of 787.00 from holding Commonwealth Bank of or generate 9.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.33% |
| Values | Daily Returns |
Nok Airlines PCL vs. Commonwealth Bank of
Performance |
| Timeline |
| Nok Airlines PCL |
| Commonwealth Bank |
Nok Airlines and Commonwealth Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nok Airlines and Commonwealth Bank
The main advantage of trading using opposite Nok Airlines and Commonwealth Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nok Airlines position performs unexpectedly, Commonwealth Bank 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 Commonwealth Bank will offset losses from the drop in Commonwealth Bank's long position.| Nok Airlines vs. HEALTHSTREAM | Nok Airlines vs. Molina Healthcare | Nok Airlines vs. TRAINLINE PLC LS | Nok Airlines vs. Air Transport Services |
| Commonwealth Bank vs. alstria office REIT AG | Commonwealth Bank vs. CITY OFFICE REIT | Commonwealth Bank vs. Check Point Software | Commonwealth Bank vs. CENTURIA OFFICE REIT |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |