Correlation Between Nok Airlines and Hanover Insurance
Can any of the company-specific risk be diversified away by investing in both Nok Airlines and Hanover Insurance 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 Hanover Insurance 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 The Hanover Insurance, you can compare the effects of market volatilities on Nok Airlines and Hanover Insurance 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 Hanover Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nok Airlines and Hanover Insurance.
Diversification Opportunities for Nok Airlines and Hanover Insurance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nok and Hanover is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nok Airlines Public and The Hanover Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanover Insurance 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 Hanover Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanover Insurance has no effect on the direction of Nok Airlines i.e., Nok Airlines and Hanover Insurance go up and down completely randomly.
Pair Corralation between Nok Airlines and Hanover Insurance
If you would invest 15,320 in The Hanover Insurance on November 4, 2024 and sell it today you would lose (11.00) from holding The Hanover Insurance or give up 0.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nok Airlines Public vs. The Hanover Insurance
Performance |
| Timeline |
| Nok Airlines Public |
| Hanover Insurance |
Nok Airlines and Hanover Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nok Airlines and Hanover Insurance
The main advantage of trading using opposite Nok Airlines and Hanover Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nok Airlines position performs unexpectedly, Hanover Insurance 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 Hanover Insurance will offset losses from the drop in Hanover Insurance's long position.| Nok Airlines vs. Starbucks | Nok Airlines vs. Portillos | Nok Airlines vs. RCI Hospitality Holdings | Nok Airlines vs. Grocery Outlet Holding |
| Hanover Insurance vs. Horace Mann Educators | Hanover Insurance vs. Kemper | Hanover Insurance vs. RLI Corp | Hanover Insurance vs. Global Indemnity 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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