Correlation Between United Airlines and Nok Airlines
Can any of the company-specific risk be diversified away by investing in both United Airlines 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 United Airlines and Nok Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Airlines Holdings and Nok Airlines Public, you can compare the effects of market volatilities on United Airlines 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 United Airlines with a short position of Nok Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Airlines and Nok Airlines.
Diversification Opportunities for United Airlines and Nok Airlines
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between United and Nok is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding United Airlines Holdings and Nok Airlines Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nok Airlines Public and United 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 United Airlines Holdings 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 Public has no effect on the direction of United Airlines i.e., United Airlines and Nok Airlines go up and down completely randomly.
Pair Corralation between United Airlines and Nok Airlines
If you would invest 4,919 in United Airlines Holdings on November 2, 2024 and sell it today you would earn a total of 5,736 from holding United Airlines Holdings or generate 116.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Airlines Holdings vs. Nok Airlines Public
Performance |
| Timeline |
| United Airlines Holdings |
| Nok Airlines Public |
United Airlines and Nok Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Airlines and Nok Airlines
The main advantage of trading using opposite United Airlines and Nok Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Airlines 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.| United Airlines vs. American Airlines Group | United Airlines vs. Southwest Airlines | United Airlines vs. JetBlue Airways Corp | United Airlines vs. Delta Air Lines |
| Nok Airlines vs. United Airlines Holdings | Nok Airlines vs. Delta Air Lines | Nok Airlines vs. JetBlue Airways Corp | Nok Airlines vs. Southwest Airlines |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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