Correlation Between Nok Airlines and Universal Display
Can any of the company-specific risk be diversified away by investing in both Nok Airlines and Universal Display 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 Universal Display 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 Universal Display, you can compare the effects of market volatilities on Nok Airlines and Universal Display 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 Universal Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nok Airlines and Universal Display.
Diversification Opportunities for Nok Airlines and Universal Display
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nok and Universal is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nok Airlines PCL and Universal Display in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Universal Display 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 Universal Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Universal Display has no effect on the direction of Nok Airlines i.e., Nok Airlines and Universal Display go up and down completely randomly.
Pair Corralation between Nok Airlines and Universal Display
If you would invest 2.50 in Nok Airlines PCL on September 1, 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. Universal Display
Performance |
| Timeline |
| Nok Airlines PCL |
| Universal Display |
Nok Airlines and Universal Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nok Airlines and Universal Display
The main advantage of trading using opposite Nok Airlines and Universal Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nok Airlines position performs unexpectedly, Universal Display 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 Universal Display will offset losses from the drop in Universal Display's long position.| Nok Airlines vs. Apple Inc | Nok Airlines vs. Apple Inc | Nok Airlines vs. Apple Inc | Nok Airlines vs. Apple Inc |
| Universal Display vs. Superior Plus Corp | Universal Display vs. NMI Holdings | Universal Display vs. Origin Agritech | Universal Display vs. SIVERS SEMICONDUCTORS AB |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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