Correlation Between Nok Airlines and Perception Capital
Can any of the company-specific risk be diversified away by investing in both Nok Airlines and Perception Capital 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 Perception Capital 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 Perception Capital Corp, you can compare the effects of market volatilities on Nok Airlines and Perception Capital 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 Perception Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nok Airlines and Perception Capital.
Diversification Opportunities for Nok Airlines and Perception Capital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nok and Perception is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nok Airlines Public and Perception Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perception Capital 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 Perception Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perception Capital Corp has no effect on the direction of Nok Airlines i.e., Nok Airlines and Perception Capital go up and down completely randomly.
Pair Corralation between Nok Airlines and Perception Capital
If you would invest 1,085 in Perception Capital Corp on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Perception Capital Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.3% |
| Values | Daily Returns |
Nok Airlines Public vs. Perception Capital Corp
Performance |
| Timeline |
| Nok Airlines Public |
| Perception Capital Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Nok Airlines and Perception Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nok Airlines and Perception Capital
The main advantage of trading using opposite Nok Airlines and Perception Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nok Airlines position performs unexpectedly, Perception Capital 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 Perception Capital will offset losses from the drop in Perception Capital'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 |
| Perception Capital vs. Aegean Airlines SA | Perception Capital vs. Nok Airlines Public | Perception Capital vs. Allegiant Travel | Perception Capital vs. Ryanair Holdings PLC |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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