Correlation Between Nok Airlines and GE Vernova
Can any of the company-specific risk be diversified away by investing in both Nok Airlines and GE Vernova 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 GE Vernova 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 GE Vernova LLC, you can compare the effects of market volatilities on Nok Airlines and GE Vernova 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 GE Vernova. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nok Airlines and GE Vernova.
Diversification Opportunities for Nok Airlines and GE Vernova
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nok and GEV is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nok Airlines Public and GE Vernova LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GE Vernova LLC 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 GE Vernova. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GE Vernova LLC has no effect on the direction of Nok Airlines i.e., Nok Airlines and GE Vernova go up and down completely randomly.
Pair Corralation between Nok Airlines and GE Vernova
If you would invest 30,086 in GE Vernova LLC on November 1, 2024 and sell it today you would earn a total of 8,208 from holding GE Vernova LLC or generate 27.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.33% |
| Values | Daily Returns |
Nok Airlines Public vs. GE Vernova LLC
Performance |
| Timeline |
| Nok Airlines Public |
| GE Vernova LLC |
Nok Airlines and GE Vernova Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nok Airlines and GE Vernova
The main advantage of trading using opposite Nok Airlines and GE Vernova positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nok Airlines position performs unexpectedly, GE Vernova 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 GE Vernova will offset losses from the drop in GE Vernova's long position.| Nok Airlines vs. Discover Financial Services | Nok Airlines vs. PennantPark Floating Rate | Nok Airlines vs. Exchange Bankshares | Nok Airlines vs. Fidus Investment Corp |
| GE Vernova vs. Primo Brands | GE Vernova vs. SNDL Inc | GE Vernova vs. Keurig Dr Pepper | GE Vernova vs. Monster Beverage Corp |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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