Correlation Between Playa Hotels and Nok Airlines
Can any of the company-specific risk be diversified away by investing in both Playa Hotels and Nok Airlines 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 Playa Hotels and Nok Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Playa Hotels Resorts and Nok Airlines PCL, you can compare the effects of market volatilities on Playa Hotels and Nok Airlines 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 Playa Hotels with a short position of Nok Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playa Hotels and Nok Airlines.
Diversification Opportunities for Playa Hotels and Nok Airlines
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Playa and Nok is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Playa Hotels Resorts and Nok Airlines PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nok Airlines PCL and Playa Hotels 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 Playa Hotels Resorts are associated (or correlated) with Nok Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nok Airlines PCL has no effect on the direction of Playa Hotels i.e., Playa Hotels and Nok Airlines go up and down completely randomly.
Pair Corralation between Playa Hotels and Nok Airlines
If you would invest 690.00 in Playa Hotels Resorts on August 29, 2024 and sell it today you would earn a total of 225.00 from holding Playa Hotels Resorts or generate 32.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Playa Hotels Resorts vs. Nok Airlines PCL
Performance |
| Timeline |
| Playa Hotels Resorts |
| Nok Airlines PCL |
Playa Hotels and Nok Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playa Hotels and Nok Airlines
The main advantage of trading using opposite Playa Hotels and Nok Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playa Hotels position performs unexpectedly, Nok Airlines 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 Nok Airlines will offset losses from the drop in Nok Airlines' long position.| Playa Hotels vs. Amkor Technology | Playa Hotels vs. Xinhua Winshare Publishing | Playa Hotels vs. Laureate Education | Playa Hotels vs. AECOM TECHNOLOGY |
| Nok Airlines vs. GALENA MINING LTD | Nok Airlines vs. Penn National Gaming | Nok Airlines vs. JD SPORTS FASH | Nok Airlines vs. ARISTOCRAT LEISURE |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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