Correlation Between Nok Airlines and KENNAMETAL INC
Can any of the company-specific risk be diversified away by investing in both Nok Airlines and KENNAMETAL INC 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 KENNAMETAL INC 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 KENNAMETAL INC, you can compare the effects of market volatilities on Nok Airlines and KENNAMETAL INC 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 KENNAMETAL INC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nok Airlines and KENNAMETAL INC.
Diversification Opportunities for Nok Airlines and KENNAMETAL INC
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nok and KENNAMETAL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nok Airlines PCL and KENNAMETAL INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KENNAMETAL INC 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 KENNAMETAL INC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KENNAMETAL INC has no effect on the direction of Nok Airlines i.e., Nok Airlines and KENNAMETAL INC go up and down completely randomly.
Pair Corralation between Nok Airlines and KENNAMETAL INC
If you would invest 2.50 in Nok Airlines PCL on October 28, 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 | 97.44% |
| Values | Daily Returns |
Nok Airlines PCL vs. KENNAMETAL INC
Performance |
| Timeline |
| Nok Airlines PCL |
| KENNAMETAL INC |
Nok Airlines and KENNAMETAL INC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nok Airlines and KENNAMETAL INC
The main advantage of trading using opposite Nok Airlines and KENNAMETAL INC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nok Airlines position performs unexpectedly, KENNAMETAL INC 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 KENNAMETAL INC will offset losses from the drop in KENNAMETAL INC's long position.| Nok Airlines vs. ScanSource | Nok Airlines vs. China Eastern Airlines | Nok Airlines vs. CanSino Biologics | Nok Airlines vs. Singapore Airlines Limited |
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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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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