Correlation Between Nok Airlines and URBAN OUTFITTERS
Can any of the company-specific risk be diversified away by investing in both Nok Airlines and URBAN OUTFITTERS 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 URBAN OUTFITTERS 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 URBAN OUTFITTERS, you can compare the effects of market volatilities on Nok Airlines and URBAN OUTFITTERS 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 URBAN OUTFITTERS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nok Airlines and URBAN OUTFITTERS.
Diversification Opportunities for Nok Airlines and URBAN OUTFITTERS
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nok and URBAN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nok Airlines PCL and URBAN OUTFITTERS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on URBAN OUTFITTERS 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 URBAN OUTFITTERS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of URBAN OUTFITTERS has no effect on the direction of Nok Airlines i.e., Nok Airlines and URBAN OUTFITTERS go up and down completely randomly.
Pair Corralation between Nok Airlines and URBAN OUTFITTERS
If you would invest 3,960 in URBAN OUTFITTERS on November 7, 2024 and sell it today you would earn a total of 1,340 from holding URBAN OUTFITTERS or generate 33.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Nok Airlines PCL vs. URBAN OUTFITTERS
Performance |
| Timeline |
| Nok Airlines PCL |
| URBAN OUTFITTERS |
Nok Airlines and URBAN OUTFITTERS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nok Airlines and URBAN OUTFITTERS
The main advantage of trading using opposite Nok Airlines and URBAN OUTFITTERS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nok Airlines position performs unexpectedly, URBAN OUTFITTERS 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 URBAN OUTFITTERS will offset losses from the drop in URBAN OUTFITTERS's long position.| Nok Airlines vs. USWE SPORTS AB | Nok Airlines vs. Playtech plc | Nok Airlines vs. Diamyd Medical AB | Nok Airlines vs. PLAYTIKA HOLDING DL 01 |
| URBAN OUTFITTERS vs. MELIA HOTELS | URBAN OUTFITTERS vs. KENEDIX OFFICE INV | URBAN OUTFITTERS vs. Haverty Furniture Companies | URBAN OUTFITTERS vs. CITY OFFICE REIT |
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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