Correlation Between Nok Airlines and Baldwin Insurance
Can any of the company-specific risk be diversified away by investing in both Nok Airlines and Baldwin 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 Baldwin Insurance 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 The Baldwin Insurance, you can compare the effects of market volatilities on Nok Airlines and Baldwin 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 Baldwin Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nok Airlines and Baldwin Insurance.
Diversification Opportunities for Nok Airlines and Baldwin Insurance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nok and Baldwin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nok Airlines Public and The Baldwin Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baldwin 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 Public are associated (or correlated) with Baldwin Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baldwin Insurance has no effect on the direction of Nok Airlines i.e., Nok Airlines and Baldwin Insurance go up and down completely randomly.
Pair Corralation between Nok Airlines and Baldwin Insurance
If you would invest 2,702 in The Baldwin Insurance on August 28, 2024 and sell it today you would earn a total of 2,155 from holding The Baldwin Insurance or generate 79.76% 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. The Baldwin Insurance
Performance |
| Timeline |
| Nok Airlines Public |
| Baldwin Insurance |
Nok Airlines and Baldwin Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nok Airlines and Baldwin Insurance
The main advantage of trading using opposite Nok Airlines and Baldwin Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nok Airlines position performs unexpectedly, Baldwin 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 Baldwin Insurance will offset losses from the drop in Baldwin Insurance'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 |
| Baldwin Insurance vs. Paiute Oil Mining | Baldwin Insurance vs. Minerals Technologies | Baldwin Insurance vs. Parker Hannifin | Baldwin Insurance vs. Highway Holdings Limited |
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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