Correlation Between Nok Airlines and Zurich Insurance
Can any of the company-specific risk be diversified away by investing in both Nok Airlines and Zurich Insurance 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 Zurich Insurance 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 Zurich Insurance Group, you can compare the effects of market volatilities on Nok Airlines and Zurich Insurance 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 Zurich Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nok Airlines and Zurich Insurance.
Diversification Opportunities for Nok Airlines and Zurich Insurance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nok and Zurich is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nok Airlines PCL and Zurich Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zurich Insurance 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 Zurich Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zurich Insurance has no effect on the direction of Nok Airlines i.e., Nok Airlines and Zurich Insurance go up and down completely randomly.
Pair Corralation between Nok Airlines and Zurich Insurance
If you would invest 2.50 in Nok Airlines PCL on October 13, 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. Zurich Insurance Group
Performance |
| Timeline |
| Nok Airlines PCL |
| Zurich Insurance |
Nok Airlines and Zurich Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nok Airlines and Zurich Insurance
The main advantage of trading using opposite Nok Airlines and Zurich Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nok Airlines position performs unexpectedly, Zurich Insurance 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 Zurich Insurance will offset losses from the drop in Zurich Insurance's long position.| Nok Airlines vs. JD SPORTS FASH | Nok Airlines vs. ePlay Digital | Nok Airlines vs. CVB Financial Corp | Nok Airlines vs. USWE SPORTS AB |
| Zurich Insurance vs. United Airlines Holdings | Zurich Insurance vs. Nok Airlines PCL | Zurich Insurance vs. PARKEN Sport Entertainment | Zurich Insurance vs. International Consolidated Airlines |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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