Correlation Between Nok Airlines and Seadrill
Can any of the company-specific risk be diversified away by investing in both Nok Airlines and Seadrill 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 Seadrill 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 Seadrill Limited, you can compare the effects of market volatilities on Nok Airlines and Seadrill 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 Seadrill. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nok Airlines and Seadrill.
Diversification Opportunities for Nok Airlines and Seadrill
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nok and Seadrill is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nok Airlines Public and Seadrill Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seadrill Limited 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 Seadrill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seadrill Limited has no effect on the direction of Nok Airlines i.e., Nok Airlines and Seadrill go up and down completely randomly.
Pair Corralation between Nok Airlines and Seadrill
If you would invest 9.50 in Nok Airlines Public on November 2, 2024 and sell it today you would earn a total of 0.00 from holding Nok Airlines Public or generate 0.0% 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. Seadrill Limited
Performance |
| Timeline |
| Nok Airlines Public |
| Seadrill Limited |
Nok Airlines and Seadrill Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nok Airlines and Seadrill
The main advantage of trading using opposite Nok Airlines and Seadrill positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nok Airlines position performs unexpectedly, Seadrill 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 Seadrill will offset losses from the drop in Seadrill's long position.| Nok Airlines vs. Discover Financial Services | Nok Airlines vs. PennantPark Floating Rate | Nok Airlines vs. Exchange Bankshares | Nok Airlines vs. Fidus Investment Corp |
| Seadrill vs. Nabors Industries | Seadrill vs. Borr Drilling | Seadrill vs. Patterson UTI Energy | Seadrill vs. Noble 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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