Correlation Between Nok Airlines and SINGAPORE AIRLINES
Can any of the company-specific risk be diversified away by investing in both Nok Airlines and SINGAPORE AIRLINES 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 SINGAPORE AIRLINES 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 SINGAPORE AIRLINES, you can compare the effects of market volatilities on Nok Airlines and SINGAPORE AIRLINES 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 SINGAPORE AIRLINES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nok Airlines and SINGAPORE AIRLINES.
Diversification Opportunities for Nok Airlines and SINGAPORE AIRLINES
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nok and SINGAPORE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nok Airlines PCL and SINGAPORE AIRLINES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SINGAPORE AIRLINES 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 SINGAPORE AIRLINES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SINGAPORE AIRLINES has no effect on the direction of Nok Airlines i.e., Nok Airlines and SINGAPORE AIRLINES go up and down completely randomly.
Pair Corralation between Nok Airlines and SINGAPORE AIRLINES
If you would invest 419.00 in SINGAPORE AIRLINES on August 29, 2024 and sell it today you would earn a total of 23.00 from holding SINGAPORE AIRLINES or generate 5.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
Nok Airlines PCL vs. SINGAPORE AIRLINES
Performance |
| Timeline |
| Nok Airlines PCL |
| SINGAPORE AIRLINES |
Nok Airlines and SINGAPORE AIRLINES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nok Airlines and SINGAPORE AIRLINES
The main advantage of trading using opposite Nok Airlines and SINGAPORE AIRLINES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nok Airlines position performs unexpectedly, SINGAPORE AIRLINES 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 SINGAPORE AIRLINES will offset losses from the drop in SINGAPORE AIRLINES's long position.| Nok Airlines vs. GALENA MINING LTD | Nok Airlines vs. Penn National Gaming | Nok Airlines vs. JD SPORTS FASH | Nok Airlines vs. ARISTOCRAT LEISURE |
| SINGAPORE AIRLINES vs. Apple Inc | SINGAPORE AIRLINES vs. Apple Inc | SINGAPORE AIRLINES vs. Superior Plus Corp | SINGAPORE AIRLINES vs. SIVERS SEMICONDUCTORS AB |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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