Correlation Between Nok Airlines and Eldorado Gold
Can any of the company-specific risk be diversified away by investing in both Nok Airlines and Eldorado Gold 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 Eldorado Gold 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 Eldorado Gold Corp, you can compare the effects of market volatilities on Nok Airlines and Eldorado Gold 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 Eldorado Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nok Airlines and Eldorado Gold.
Diversification Opportunities for Nok Airlines and Eldorado Gold
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nok and Eldorado is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nok Airlines Public and Eldorado Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eldorado Gold Corp 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 Eldorado Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eldorado Gold Corp has no effect on the direction of Nok Airlines i.e., Nok Airlines and Eldorado Gold go up and down completely randomly.
Pair Corralation between Nok Airlines and Eldorado Gold
If you would invest 820.00 in Eldorado Gold Corp on September 4, 2024 and sell it today you would earn a total of 759.00 from holding Eldorado Gold Corp or generate 92.56% 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. Eldorado Gold Corp
Performance |
| Timeline |
| Nok Airlines Public |
| Eldorado Gold Corp |
Nok Airlines and Eldorado Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nok Airlines and Eldorado Gold
The main advantage of trading using opposite Nok Airlines and Eldorado Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nok Airlines position performs unexpectedly, Eldorado Gold 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 Eldorado Gold will offset losses from the drop in Eldorado Gold's long position.| Nok Airlines vs. Finnair Oyj | Nok Airlines vs. easyJet plc | Nok Airlines vs. Norse Atlantic ASA | Nok Airlines vs. Air New Zealand |
| Eldorado Gold vs. Constellium Nv | Eldorado Gold vs. Century Aluminum | Eldorado Gold vs. China Hongqiao Group | Eldorado Gold vs. Kaiser Aluminum |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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