Correlation Between Nok Airlines and Air Transport
Can any of the company-specific risk be diversified away by investing in both Nok Airlines and Air Transport 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 Air Transport 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 Air Transport Services, you can compare the effects of market volatilities on Nok Airlines and Air Transport 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 Air Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nok Airlines and Air Transport.
Diversification Opportunities for Nok Airlines and Air Transport
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nok and Air is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nok Airlines Public and Air Transport Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Transport Services 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 Air Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air Transport Services has no effect on the direction of Nok Airlines i.e., Nok Airlines and Air Transport go up and down completely randomly.
Pair Corralation between Nok Airlines and Air Transport
If you would invest 1,720 in Air Transport Services on August 28, 2024 and sell it today you would earn a total of 475.00 from holding Air Transport Services or generate 27.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nok Airlines Public vs. Air Transport Services
Performance |
| Timeline |
| Nok Airlines Public |
| Air Transport Services |
Nok Airlines and Air Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nok Airlines and Air Transport
The main advantage of trading using opposite Nok Airlines and Air Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nok Airlines position performs unexpectedly, Air Transport 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 Air Transport will offset losses from the drop in Air Transport's long position.| Nok Airlines vs. Luxfer Holdings PLC | Nok Airlines vs. X FAB Silicon Foundries | Nok Airlines vs. Air Transport Services | Nok Airlines vs. Ziff Davis |
| Air Transport vs. Copa Holdings SA | Air Transport vs. SkyWest | Air Transport vs. Sun Country Airlines | Air Transport vs. Frontier Group 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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