Correlation Between Nok Airlines and Harley Davidson
Can any of the company-specific risk be diversified away by investing in both Nok Airlines and Harley Davidson 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 Harley Davidson 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 Harley Davidson, you can compare the effects of market volatilities on Nok Airlines and Harley Davidson 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 Harley Davidson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nok Airlines and Harley Davidson.
Diversification Opportunities for Nok Airlines and Harley Davidson
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nok and Harley is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nok Airlines PCL and Harley Davidson in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harley Davidson 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 Harley Davidson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harley Davidson has no effect on the direction of Nok Airlines i.e., Nok Airlines and Harley Davidson go up and down completely randomly.
Pair Corralation between Nok Airlines and Harley Davidson
If you would invest 2.50 in Nok Airlines PCL on November 8, 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 | 84.2% |
| Values | Daily Returns |
Nok Airlines PCL vs. Harley Davidson
Performance |
| Timeline |
| Nok Airlines PCL |
| Harley Davidson |
Nok Airlines and Harley Davidson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nok Airlines and Harley Davidson
The main advantage of trading using opposite Nok Airlines and Harley Davidson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nok Airlines position performs unexpectedly, Harley Davidson 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 Harley Davidson will offset losses from the drop in Harley Davidson's long position.| Nok Airlines vs. USWE SPORTS AB | Nok Airlines vs. Playtech plc | Nok Airlines vs. Diamyd Medical AB | Nok Airlines vs. PLAYTIKA HOLDING DL 01 |
| Harley Davidson vs. Harley Davidson | Harley Davidson vs. BRP Inc | Harley Davidson vs. Polaris | Harley Davidson vs. Fox Factory Holding |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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