Correlation Between Nok Airlines and Solstad Offshore
Can any of the company-specific risk be diversified away by investing in both Nok Airlines and Solstad Offshore 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 Solstad Offshore 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 Solstad Offshore ASA, you can compare the effects of market volatilities on Nok Airlines and Solstad Offshore 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 Solstad Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nok Airlines and Solstad Offshore.
Diversification Opportunities for Nok Airlines and Solstad Offshore
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nok and Solstad is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nok Airlines PCL and Solstad Offshore ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solstad Offshore ASA 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 Solstad Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solstad Offshore ASA has no effect on the direction of Nok Airlines i.e., Nok Airlines and Solstad Offshore go up and down completely randomly.
Pair Corralation between Nok Airlines and Solstad Offshore
If you would invest 260.00 in Solstad Offshore ASA on October 26, 2024 and sell it today you would earn a total of 81.00 from holding Solstad Offshore ASA or generate 31.15% 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. Solstad Offshore ASA
Performance |
| Timeline |
| Nok Airlines PCL |
| Solstad Offshore ASA |
Nok Airlines and Solstad Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nok Airlines and Solstad Offshore
The main advantage of trading using opposite Nok Airlines and Solstad Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nok Airlines position performs unexpectedly, Solstad Offshore 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 Solstad Offshore will offset losses from the drop in Solstad Offshore's long position.| Nok Airlines vs. The Boston Beer | Nok Airlines vs. United Breweries Co | Nok Airlines vs. S E BANKEN A | Nok Airlines vs. Suntory Beverage Food |
| Solstad Offshore vs. AP Mller | Solstad Offshore vs. AP Mller | Solstad Offshore vs. HAPAG LLOYD UNSPADR 12 | Solstad Offshore vs. DFDS AS |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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