Correlation Between Nok Airlines and MGIC Investment
Can any of the company-specific risk be diversified away by investing in both Nok Airlines and MGIC Investment 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 MGIC Investment 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 MGIC Investment Corp, you can compare the effects of market volatilities on Nok Airlines and MGIC Investment 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 MGIC Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nok Airlines and MGIC Investment.
Diversification Opportunities for Nok Airlines and MGIC Investment
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nok and MGIC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nok Airlines Public and MGIC Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MGIC Investment 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 MGIC Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MGIC Investment Corp has no effect on the direction of Nok Airlines i.e., Nok Airlines and MGIC Investment go up and down completely randomly.
Pair Corralation between Nok Airlines and MGIC Investment
If you would invest 1,602 in MGIC Investment Corp on September 12, 2024 and sell it today you would earn a total of 855.00 from holding MGIC Investment Corp or generate 53.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.72% |
| Values | Daily Returns |
Nok Airlines Public vs. MGIC Investment Corp
Performance |
| Timeline |
| Nok Airlines Public |
| MGIC Investment Corp |
Nok Airlines and MGIC Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nok Airlines and MGIC Investment
The main advantage of trading using opposite Nok Airlines and MGIC Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nok Airlines position performs unexpectedly, MGIC Investment 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 MGIC Investment will offset losses from the drop in MGIC Investment'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 |
| MGIC Investment vs. MBIA Inc | MGIC Investment vs. NMI Holdings | MGIC Investment vs. Essent Group | MGIC Investment vs. Assured Guaranty |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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