Correlation Between Nok Airlines and Tsingtao Brewery
Can any of the company-specific risk be diversified away by investing in both Nok Airlines and Tsingtao Brewery 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 Tsingtao Brewery 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 Tsingtao Brewery, you can compare the effects of market volatilities on Nok Airlines and Tsingtao Brewery 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 Tsingtao Brewery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nok Airlines and Tsingtao Brewery.
Diversification Opportunities for Nok Airlines and Tsingtao Brewery
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nok and Tsingtao is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nok Airlines PCL and Tsingtao Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tsingtao Brewery 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 Tsingtao Brewery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tsingtao Brewery has no effect on the direction of Nok Airlines i.e., Nok Airlines and Tsingtao Brewery go up and down completely randomly.
Pair Corralation between Nok Airlines and Tsingtao Brewery
If you would invest 590.00 in Tsingtao Brewery on October 18, 2024 and sell it today you would earn a total of 45.00 from holding Tsingtao Brewery or generate 7.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.19% |
| Values | Daily Returns |
Nok Airlines PCL vs. Tsingtao Brewery
Performance |
| Timeline |
| Nok Airlines PCL |
| Tsingtao Brewery |
Nok Airlines and Tsingtao Brewery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nok Airlines and Tsingtao Brewery
The main advantage of trading using opposite Nok Airlines and Tsingtao Brewery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nok Airlines position performs unexpectedly, Tsingtao Brewery 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 Tsingtao Brewery will offset losses from the drop in Tsingtao Brewery's long position.| Nok Airlines vs. FIREWEED METALS P | Nok Airlines vs. Fortescue Metals Group | Nok Airlines vs. BW OFFSHORE LTD | Nok Airlines vs. Solstad Offshore ASA |
| Tsingtao Brewery vs. Nok Airlines PCL | Tsingtao Brewery vs. REVO INSURANCE SPA | Tsingtao Brewery vs. Synchrony Financial | Tsingtao Brewery vs. BANKINTER ADR 2007 |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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