Correlation Between Nok Airlines and Semtech
Can any of the company-specific risk be diversified away by investing in both Nok Airlines and Semtech 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 Semtech 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 Semtech, you can compare the effects of market volatilities on Nok Airlines and Semtech 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 Semtech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nok Airlines and Semtech.
Diversification Opportunities for Nok Airlines and Semtech
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nok and Semtech is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nok Airlines Public and Semtech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Semtech 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 Semtech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Semtech has no effect on the direction of Nok Airlines i.e., Nok Airlines and Semtech go up and down completely randomly.
Pair Corralation between Nok Airlines and Semtech
If you would invest 2,998 in Semtech on September 2, 2024 and sell it today you would earn a total of 3,406 from holding Semtech or generate 113.61% 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. Semtech
Performance |
| Timeline |
| Nok Airlines Public |
| Semtech |
Nok Airlines and Semtech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nok Airlines and Semtech
The main advantage of trading using opposite Nok Airlines and Semtech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nok Airlines position performs unexpectedly, Semtech 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 Semtech will offset losses from the drop in Semtech's long position.| Nok Airlines vs. Simpson Manufacturing | Nok Airlines vs. Transocean | Nok Airlines vs. EMCOR Group | Nok Airlines vs. Helmerich and Payne |
| Semtech vs. Power Integrations | Semtech vs. Diodes Incorporated | Semtech vs. MACOM Technology Solutions | Semtech vs. Cirrus Logic |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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