Correlation Between Nok Airlines and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Nok Airlines and Dow Jones 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 Dow Jones 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 Dow Jones Industrial, you can compare the effects of market volatilities on Nok Airlines and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nok Airlines and Dow Jones.
Diversification Opportunities for Nok Airlines and Dow Jones
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nok and Dow is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nok Airlines PCL and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Nok Airlines i.e., Nok Airlines and Dow Jones go up and down completely randomly.
Pair Corralation between Nok Airlines and Dow Jones
If you would invest 4,238,757 in Dow Jones Industrial on August 29, 2024 and sell it today you would earn a total of 247,274 from holding Dow Jones Industrial or generate 5.83% 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. Dow Jones Industrial
Performance |
| Timeline |
Nok Airlines and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Nok Airlines PCL
Pair trading matchups for Nok Airlines
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Nok Airlines and Dow Jones
The main advantage of trading using opposite Nok Airlines and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nok Airlines position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Nok Airlines vs. GALENA MINING LTD | Nok Airlines vs. Penn National Gaming | Nok Airlines vs. JD SPORTS FASH | Nok Airlines vs. ARISTOCRAT LEISURE |
| Dow Jones vs. Kaltura | Dow Jones vs. Artisan Partners Asset | Dow Jones vs. US Global Investors | Dow Jones vs. Analog Devices |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |