Correlation Between Nok Airlines and ServiceNow
Can any of the company-specific risk be diversified away by investing in both Nok Airlines and ServiceNow 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 ServiceNow 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 ServiceNow, you can compare the effects of market volatilities on Nok Airlines and ServiceNow 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 ServiceNow. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nok Airlines and ServiceNow.
Diversification Opportunities for Nok Airlines and ServiceNow
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nok and ServiceNow is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nok Airlines Public and ServiceNow in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ServiceNow 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 ServiceNow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ServiceNow has no effect on the direction of Nok Airlines i.e., Nok Airlines and ServiceNow go up and down completely randomly.
Pair Corralation between Nok Airlines and ServiceNow
If you would invest 94,500 in ServiceNow on August 28, 2024 and sell it today you would earn a total of 10,771 from holding ServiceNow or generate 11.4% 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. ServiceNow
Performance |
| Timeline |
| Nok Airlines Public |
| ServiceNow |
Nok Airlines and ServiceNow Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nok Airlines and ServiceNow
The main advantage of trading using opposite Nok Airlines and ServiceNow positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nok Airlines position performs unexpectedly, ServiceNow 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 ServiceNow will offset losses from the drop in ServiceNow'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 |
| ServiceNow vs. Autodesk | ServiceNow vs. Intuit Inc | ServiceNow vs. Zoom Video Communications | ServiceNow vs. Snowflake |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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