Correlation Between Nok Airlines and Sun Country
Can any of the company-specific risk be diversified away by investing in both Nok Airlines and Sun Country 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 Sun Country 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 Sun Country Airlines, you can compare the effects of market volatilities on Nok Airlines and Sun Country 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 Sun Country. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nok Airlines and Sun Country.
Diversification Opportunities for Nok Airlines and Sun Country
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nok and Sun is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nok Airlines Public and Sun Country Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sun Country Airlines 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 Sun Country. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sun Country Airlines has no effect on the direction of Nok Airlines i.e., Nok Airlines and Sun Country go up and down completely randomly.
Pair Corralation between Nok Airlines and Sun Country
If you would invest 956.00 in Sun Country Airlines on August 24, 2024 and sell it today you would earn a total of 435.00 from holding Sun Country Airlines or generate 45.5% 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. Sun Country Airlines
Performance |
| Timeline |
| Nok Airlines Public |
| Sun Country Airlines |
Nok Airlines and Sun Country Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nok Airlines and Sun Country
The main advantage of trading using opposite Nok Airlines and Sun Country positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nok Airlines position performs unexpectedly, Sun Country 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 Sun Country will offset losses from the drop in Sun Country's long position.| Nok Airlines vs. Delta Air Lines | Nok Airlines vs. Ryanair Holdings PLC | Nok Airlines vs. Air China Limited | Nok Airlines vs. Air China Ltd |
| Sun Country vs. Spirit Airlines | Sun Country vs. JetBlue Airways Corp | Sun Country vs. Allegiant Travel | Sun Country vs. Copa Holdings SA |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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