Correlation Between Solstad Offshore and Nok Airlines
Can any of the company-specific risk be diversified away by investing in both Solstad Offshore 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 Solstad Offshore and Nok Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Solstad Offshore ASA and Nok Airlines PCL, you can compare the effects of market volatilities on Solstad Offshore 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 Solstad Offshore with a short position of Nok Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solstad Offshore and Nok Airlines.
Diversification Opportunities for Solstad Offshore and Nok Airlines
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Solstad and Nok is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Solstad Offshore ASA 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 Solstad Offshore 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 Solstad Offshore ASA 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 Solstad Offshore i.e., Solstad Offshore and Nok Airlines go up and down completely randomly.
Pair Corralation between Solstad Offshore and Nok Airlines
If you would invest 272.00 in Solstad Offshore ASA on August 31, 2024 and sell it today you would earn a total of 79.00 from holding Solstad Offshore ASA or generate 29.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Solstad Offshore ASA vs. Nok Airlines PCL
Performance |
| Timeline |
| Solstad Offshore ASA |
| Nok Airlines PCL |
Solstad Offshore and Nok Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Solstad Offshore and Nok Airlines
The main advantage of trading using opposite Solstad Offshore and Nok Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Solstad Offshore 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.| Solstad Offshore vs. Perseus Mining Limited | Solstad Offshore vs. Food Life Companies | Solstad Offshore vs. SENECA FOODS A | Solstad Offshore vs. AUSTEVOLL SEAFOOD |
| Nok Airlines vs. Western Copper and | Nok Airlines vs. Coeur Mining | Nok Airlines vs. Harmony Gold Mining | Nok Airlines vs. MINCO SILVER |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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