Correlation Between Reinsurance Group and Nok Airlines
Can any of the company-specific risk be diversified away by investing in both Reinsurance Group 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 Reinsurance Group and Nok Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Reinsurance Group of and Nok Airlines PCL, you can compare the effects of market volatilities on Reinsurance Group 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 Reinsurance Group with a short position of Nok Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Reinsurance Group and Nok Airlines.
Diversification Opportunities for Reinsurance Group and Nok Airlines
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Reinsurance and Nok is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Reinsurance Group of 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 Reinsurance Group 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 Reinsurance Group of 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 Reinsurance Group i.e., Reinsurance Group and Nok Airlines go up and down completely randomly.
Pair Corralation between Reinsurance Group and Nok Airlines
If you would invest 20,200 in Reinsurance Group of on October 11, 2024 and sell it today you would earn a total of 1,000.00 from holding Reinsurance Group of or generate 4.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Reinsurance Group of vs. Nok Airlines PCL
Performance |
| Timeline |
| Reinsurance Group |
| Nok Airlines PCL |
Reinsurance Group and Nok Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Reinsurance Group and Nok Airlines
The main advantage of trading using opposite Reinsurance Group and Nok Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Reinsurance Group 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.| Reinsurance Group vs. CAIRN HOMES EO | Reinsurance Group vs. JAPAN AIRLINES | Reinsurance Group vs. Neinor Homes SA | Reinsurance Group vs. Focus Home Interactive |
| Nok Airlines vs. Richardson Electronics | Nok Airlines vs. STMICROELECTRONICS | Nok Airlines vs. Methode Electronics | Nok Airlines vs. Samsung Electronics Co |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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