Correlation Between Nok Airlines and American Airlines
Can any of the company-specific risk be diversified away by investing in both Nok Airlines and American Airlines 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 American Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nok Airlines Public and American Airlines Group, you can compare the effects of market volatilities on Nok Airlines and American Airlines 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 American Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nok Airlines and American Airlines.
Diversification Opportunities for Nok Airlines and American Airlines
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nok and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nok Airlines Public and American Airlines Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Airlines 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 Public are associated (or correlated) with American Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Airlines has no effect on the direction of Nok Airlines i.e., Nok Airlines and American Airlines go up and down completely randomly.
Pair Corralation between Nok Airlines and American Airlines
If you would invest 1,153 in American Airlines Group on August 31, 2024 and sell it today you would earn a total of 299.00 from holding American Airlines Group or generate 25.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Nok Airlines Public vs. American Airlines Group
Performance |
| Timeline |
| Nok Airlines Public |
| American Airlines |
Nok Airlines and American Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nok Airlines and American Airlines
The main advantage of trading using opposite Nok Airlines and American Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nok Airlines position performs unexpectedly, American Airlines 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 American Airlines will offset losses from the drop in American Airlines' long position.| Nok Airlines vs. Copa Holdings SA | Nok Airlines vs. United Airlines Holdings | Nok Airlines vs. Delta Air Lines | Nok Airlines vs. SkyWest |
| American Airlines vs. Delta Air Lines | American Airlines vs. Southwest Airlines | American Airlines vs. JetBlue Airways Corp | American Airlines vs. United Airlines Holdings |
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 CEOs Directory module to screen CEOs from public companies around the world.
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