Correlation Between Nok Airlines and G III
Can any of the company-specific risk be diversified away by investing in both Nok Airlines and G III 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 G III 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 G III Apparel Group, you can compare the effects of market volatilities on Nok Airlines and G III 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 G III. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nok Airlines and G III.
Diversification Opportunities for Nok Airlines and G III
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nok and GI4 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nok Airlines PCL and G III Apparel Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G III Apparel 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 G III. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G III Apparel has no effect on the direction of Nok Airlines i.e., Nok Airlines and G III go up and down completely randomly.
Pair Corralation between Nok Airlines and G III
If you would invest 1,800 in G III Apparel Group on November 8, 2024 and sell it today you would earn a total of 1,040 from holding G III Apparel Group or generate 57.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.75% |
| Values | Daily Returns |
Nok Airlines PCL vs. G III Apparel Group
Performance |
| Timeline |
| Nok Airlines PCL |
| G III Apparel |
Nok Airlines and G III Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nok Airlines and G III
The main advantage of trading using opposite Nok Airlines and G III positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nok Airlines position performs unexpectedly, G III 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 G III will offset losses from the drop in G III's long position.| Nok Airlines vs. AGNC INVESTMENT | Nok Airlines vs. Diversified Healthcare Trust | Nok Airlines vs. MHP Hotel AG | Nok Airlines vs. Wyndham Hotels Resorts |
| G III vs. MARKET VECTR RETAIL | G III vs. TRADELINK ELECTRON | G III vs. CANON MARKETING JP | G III vs. Meta Financial Group |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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