Correlation Between Nok Airlines and JetBlue Airways
Can any of the company-specific risk be diversified away by investing in both Nok Airlines and JetBlue Airways 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 JetBlue Airways 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 JetBlue Airways Corp, you can compare the effects of market volatilities on Nok Airlines and JetBlue Airways 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 JetBlue Airways. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nok Airlines and JetBlue Airways.
Diversification Opportunities for Nok Airlines and JetBlue Airways
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nok and JetBlue is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nok Airlines Public and JetBlue Airways Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JetBlue Airways 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 JetBlue Airways. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JetBlue Airways Corp has no effect on the direction of Nok Airlines i.e., Nok Airlines and JetBlue Airways go up and down completely randomly.
Pair Corralation between Nok Airlines and JetBlue Airways
If you would invest 532.00 in JetBlue Airways Corp on August 28, 2024 and sell it today you would earn a total of 80.00 from holding JetBlue Airways Corp or generate 15.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Nok Airlines Public vs. JetBlue Airways Corp
Performance |
| Timeline |
| Nok Airlines Public |
| JetBlue Airways Corp |
Nok Airlines and JetBlue Airways Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nok Airlines and JetBlue Airways
The main advantage of trading using opposite Nok Airlines and JetBlue Airways positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nok Airlines position performs unexpectedly, JetBlue Airways 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 JetBlue Airways will offset losses from the drop in JetBlue Airways' long position.| Nok Airlines vs. Westrock Coffee | Nok Airlines vs. Boston Beer | Nok Airlines vs. Amgen Inc | Nok Airlines vs. Ambev SA ADR |
| JetBlue Airways vs. Frontier Group Holdings | JetBlue Airways vs. Southwest Airlines | JetBlue Airways vs. United Airlines Holdings | JetBlue Airways vs. American Airlines Group |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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