Correlation Between Nok Airlines and Volkswagen
Can any of the company-specific risk be diversified away by investing in both Nok Airlines and Volkswagen 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 Volkswagen 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 Volkswagen AG, you can compare the effects of market volatilities on Nok Airlines and Volkswagen 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 Volkswagen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nok Airlines and Volkswagen.
Diversification Opportunities for Nok Airlines and Volkswagen
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nok and Volkswagen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nok Airlines PCL and Volkswagen AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Volkswagen AG 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 Volkswagen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Volkswagen AG has no effect on the direction of Nok Airlines i.e., Nok Airlines and Volkswagen go up and down completely randomly.
Pair Corralation between Nok Airlines and Volkswagen
If you would invest 8,770 in Volkswagen AG on September 12, 2024 and sell it today you would earn a total of 55.00 from holding Volkswagen AG or generate 0.63% 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. Volkswagen AG
Performance |
| Timeline |
| Nok Airlines PCL |
| Volkswagen AG |
Nok Airlines and Volkswagen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nok Airlines and Volkswagen
The main advantage of trading using opposite Nok Airlines and Volkswagen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nok Airlines position performs unexpectedly, Volkswagen 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 Volkswagen will offset losses from the drop in Volkswagen's long position.| Nok Airlines vs. Apple Inc | Nok Airlines vs. Apple Inc | Nok Airlines vs. Apple Inc | Nok Airlines vs. Apple Inc |
| Volkswagen vs. Fukuyama Transporting Co | Volkswagen vs. PT Global Mediacom | Volkswagen vs. PLAYTIKA HOLDING DL 01 | Volkswagen vs. Prosiebensat 1 Media |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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