Correlation Between Nok Airlines and Sunny Optical
Can any of the company-specific risk be diversified away by investing in both Nok Airlines and Sunny Optical 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 Sunny Optical 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 Sunny Optical Technology, you can compare the effects of market volatilities on Nok Airlines and Sunny Optical 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 Sunny Optical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nok Airlines and Sunny Optical.
Diversification Opportunities for Nok Airlines and Sunny Optical
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nok and Sunny is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nok Airlines PCL and Sunny Optical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunny Optical Technology 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 Sunny Optical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunny Optical Technology has no effect on the direction of Nok Airlines i.e., Nok Airlines and Sunny Optical go up and down completely randomly.
Pair Corralation between Nok Airlines and Sunny Optical
If you would invest 786.00 in Sunny Optical Technology on August 25, 2024 and sell it today you would lose (102.00) from holding Sunny Optical Technology or give up 12.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nok Airlines PCL vs. Sunny Optical Technology
Performance |
| Timeline |
| Nok Airlines PCL |
| Sunny Optical Technology |
Nok Airlines and Sunny Optical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nok Airlines and Sunny Optical
The main advantage of trading using opposite Nok Airlines and Sunny Optical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nok Airlines position performs unexpectedly, Sunny Optical 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 Sunny Optical will offset losses from the drop in Sunny Optical's long position.| Nok Airlines vs. TYSON FOODS A | Nok Airlines vs. H FARM SPA | Nok Airlines vs. JJ SNACK FOODS | Nok Airlines vs. Astral Foods Limited |
| Sunny Optical vs. Amphenol | Sunny Optical vs. Hon Hai Precision | Sunny Optical vs. Samsung SDI Co | Sunny Optical vs. Corning Incorporated |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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