Correlation Between Nok Airlines and Eskay Mining
Can any of the company-specific risk be diversified away by investing in both Nok Airlines and Eskay Mining 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 Eskay Mining 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 Eskay Mining Corp, you can compare the effects of market volatilities on Nok Airlines and Eskay Mining 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 Eskay Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nok Airlines and Eskay Mining.
Diversification Opportunities for Nok Airlines and Eskay Mining
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nok and Eskay is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nok Airlines PCL and Eskay Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eskay Mining Corp 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 Eskay Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eskay Mining Corp has no effect on the direction of Nok Airlines i.e., Nok Airlines and Eskay Mining go up and down completely randomly.
Pair Corralation between Nok Airlines and Eskay Mining
If you would invest 9.86 in Eskay Mining Corp on September 22, 2024 and sell it today you would earn a total of 2.14 from holding Eskay Mining Corp or generate 21.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nok Airlines PCL vs. Eskay Mining Corp
Performance |
| Timeline |
| Nok Airlines PCL |
| Eskay Mining Corp |
Nok Airlines and Eskay Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nok Airlines and Eskay Mining
The main advantage of trading using opposite Nok Airlines and Eskay Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nok Airlines position performs unexpectedly, Eskay Mining 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 Eskay Mining will offset losses from the drop in Eskay Mining's long position.| Nok Airlines vs. Ebro Foods SA | Nok Airlines vs. THAI BEVERAGE | Nok Airlines vs. PLAY2CHILL SA ZY | Nok Airlines vs. Lifeway Foods |
| Eskay Mining vs. Rio Tinto Group | Eskay Mining vs. Anglo American plc | Eskay Mining vs. Liontown Resources Limited | Eskay Mining vs. NEXA RESOURCES SA |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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