Correlation Between Nok Airlines and Stanley Electric
Can any of the company-specific risk be diversified away by investing in both Nok Airlines and Stanley Electric 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 Stanley Electric 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 Stanley Electric Co, you can compare the effects of market volatilities on Nok Airlines and Stanley Electric 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 Stanley Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nok Airlines and Stanley Electric.
Diversification Opportunities for Nok Airlines and Stanley Electric
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nok and Stanley is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nok Airlines PCL and Stanley Electric Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stanley Electric 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 Stanley Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stanley Electric has no effect on the direction of Nok Airlines i.e., Nok Airlines and Stanley Electric go up and down completely randomly.
Pair Corralation between Nok Airlines and Stanley Electric
If you would invest 2.50 in Nok Airlines PCL on September 22, 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 | 100.0% |
| Values | Daily Returns |
Nok Airlines PCL vs. Stanley Electric Co
Performance |
| Timeline |
| Nok Airlines PCL |
| Stanley Electric |
Nok Airlines and Stanley Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nok Airlines and Stanley Electric
The main advantage of trading using opposite Nok Airlines and Stanley Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nok Airlines position performs unexpectedly, Stanley Electric 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 Stanley Electric will offset losses from the drop in Stanley Electric'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 |
| Stanley Electric vs. Micron Technology | Stanley Electric vs. FANDIFI TECHNOLOGY P | Stanley Electric vs. BJs Restaurants | Stanley Electric vs. British American Tobacco |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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