Correlation Between Nok Airlines and Allegiant Travel
Can any of the company-specific risk be diversified away by investing in both Nok Airlines and Allegiant Travel 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 Allegiant Travel 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 Allegiant Travel, you can compare the effects of market volatilities on Nok Airlines and Allegiant Travel 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 Allegiant Travel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nok Airlines and Allegiant Travel.
Diversification Opportunities for Nok Airlines and Allegiant Travel
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nok and Allegiant is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nok Airlines Public and Allegiant Travel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allegiant Travel 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 Allegiant Travel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allegiant Travel has no effect on the direction of Nok Airlines i.e., Nok Airlines and Allegiant Travel go up and down completely randomly.
Pair Corralation between Nok Airlines and Allegiant Travel
If you would invest 8,953 in Allegiant Travel on November 2, 2024 and sell it today you would earn a total of 1,492 from holding Allegiant Travel or generate 16.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Nok Airlines Public vs. Allegiant Travel
Performance |
| Timeline |
| Nok Airlines Public |
| Allegiant Travel |
Nok Airlines and Allegiant Travel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nok Airlines and Allegiant Travel
The main advantage of trading using opposite Nok Airlines and Allegiant Travel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nok Airlines position performs unexpectedly, Allegiant Travel 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 Allegiant Travel will offset losses from the drop in Allegiant Travel's long position.| Nok Airlines vs. United Airlines Holdings | Nok Airlines vs. Delta Air Lines | Nok Airlines vs. JetBlue Airways Corp | Nok Airlines vs. Southwest Airlines |
| Allegiant Travel vs. Azul SA | Allegiant Travel vs. Alaska Air Group | Allegiant Travel vs. International Consolidated Airlines | Allegiant Travel vs. Sun Country 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |