Correlation Between S-E BANKEN and Nok Airlines
Can any of the company-specific risk be diversified away by investing in both S-E BANKEN 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 S-E BANKEN and Nok Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between S E BANKEN A and Nok Airlines PCL, you can compare the effects of market volatilities on S-E BANKEN 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 S-E BANKEN with a short position of Nok Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of S-E BANKEN and Nok Airlines.
Diversification Opportunities for S-E BANKEN and Nok Airlines
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between S-E and Nok is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding S E BANKEN A 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 S-E BANKEN 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 S E BANKEN A 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 S-E BANKEN i.e., S-E BANKEN and Nok Airlines go up and down completely randomly.
Pair Corralation between S-E BANKEN and Nok Airlines
If you would invest 1,345 in S E BANKEN A on November 5, 2024 and sell it today you would earn a total of 26.00 from holding S E BANKEN A or generate 1.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
S E BANKEN A vs. Nok Airlines PCL
Performance |
| Timeline |
| S E BANKEN |
| Nok Airlines PCL |
S-E BANKEN and Nok Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with S-E BANKEN and Nok Airlines
The main advantage of trading using opposite S-E BANKEN and Nok Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if S-E BANKEN 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.| S-E BANKEN vs. Gaztransport Technigaz SA | S-E BANKEN vs. TITANIUM TRANSPORTGROUP | S-E BANKEN vs. CN DATANG C | S-E BANKEN vs. BII Railway Transportation |
| Nok Airlines vs. Insurance Australia Group | Nok Airlines vs. New China Life | Nok Airlines vs. SK TELECOM TDADR | Nok Airlines vs. Singapore Telecommunications Limited |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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