Correlation Between Nok Airlines and PVH Corp
Can any of the company-specific risk be diversified away by investing in both Nok Airlines and PVH Corp 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 PVH Corp 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 PVH Corp, you can compare the effects of market volatilities on Nok Airlines and PVH Corp 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 PVH Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nok Airlines and PVH Corp.
Diversification Opportunities for Nok Airlines and PVH Corp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nok and PVH is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nok Airlines Public and PVH Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PVH 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 PVH Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PVH Corp has no effect on the direction of Nok Airlines i.e., Nok Airlines and PVH Corp go up and down completely randomly.
Pair Corralation between Nok Airlines and PVH Corp
If you would invest 10,234 in PVH Corp on September 12, 2024 and sell it today you would earn a total of 742.00 from holding PVH Corp or generate 7.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Nok Airlines Public vs. PVH Corp
Performance |
| Timeline |
| Nok Airlines Public |
| PVH Corp |
Nok Airlines and PVH Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nok Airlines and PVH Corp
The main advantage of trading using opposite Nok Airlines and PVH Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nok Airlines position performs unexpectedly, PVH Corp 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 PVH Corp will offset losses from the drop in PVH Corp'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 |
| PVH Corp vs. VF Corporation | PVH Corp vs. Levi Strauss Co | PVH Corp vs. Under Armour A | PVH Corp vs. Columbia Sportswear |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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