Correlation Between Nok Airlines and FEMALE HEALTH
Can any of the company-specific risk be diversified away by investing in both Nok Airlines and FEMALE HEALTH 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 FEMALE HEALTH 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 FEMALE HEALTH, you can compare the effects of market volatilities on Nok Airlines and FEMALE HEALTH 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 FEMALE HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nok Airlines and FEMALE HEALTH.
Diversification Opportunities for Nok Airlines and FEMALE HEALTH
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nok and FEMALE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nok Airlines PCL and FEMALE HEALTH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FEMALE HEALTH 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 FEMALE HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FEMALE HEALTH has no effect on the direction of Nok Airlines i.e., Nok Airlines and FEMALE HEALTH go up and down completely randomly.
Pair Corralation between Nok Airlines and FEMALE HEALTH
If you would invest 2.50 in Nok Airlines PCL on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Nok Airlines PCL or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.48% |
| Values | Daily Returns |
Nok Airlines PCL vs. FEMALE HEALTH
Performance |
| Timeline |
| Nok Airlines PCL |
| FEMALE HEALTH |
Nok Airlines and FEMALE HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nok Airlines and FEMALE HEALTH
The main advantage of trading using opposite Nok Airlines and FEMALE HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nok Airlines position performs unexpectedly, FEMALE HEALTH 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 FEMALE HEALTH will offset losses from the drop in FEMALE HEALTH's long position.| Nok Airlines vs. Apple Inc | Nok Airlines vs. Apple Inc | Nok Airlines vs. Apple Inc | Nok Airlines vs. Apple Inc |
| FEMALE HEALTH vs. SIVERS SEMICONDUCTORS AB | FEMALE HEALTH vs. Darden Restaurants | FEMALE HEALTH vs. Reliance Steel Aluminum | FEMALE HEALTH vs. Q2M Managementberatung AG |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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