Correlation Between Victorias Secret and Nok Airlines
Can any of the company-specific risk be diversified away by investing in both Victorias Secret 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 Victorias Secret and Nok Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Victorias Secret Co and Nok Airlines Public, you can compare the effects of market volatilities on Victorias Secret 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 Victorias Secret with a short position of Nok Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Victorias Secret and Nok Airlines.
Diversification Opportunities for Victorias Secret and Nok Airlines
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Victorias and Nok is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Victorias Secret Co 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 Victorias Secret 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 Victorias Secret Co 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 Victorias Secret i.e., Victorias Secret and Nok Airlines go up and down completely randomly.
Pair Corralation between Victorias Secret and Nok Airlines
If you would invest 2,856 in Victorias Secret Co on September 19, 2024 and sell it today you would earn a total of 1,653 from holding Victorias Secret Co or generate 57.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.62% |
| Values | Daily Returns |
Victorias Secret Co vs. Nok Airlines Public
Performance |
| Timeline |
| Victorias Secret |
| Nok Airlines Public |
Victorias Secret and Nok Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Victorias Secret and Nok Airlines
The main advantage of trading using opposite Victorias Secret and Nok Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Victorias Secret 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.| Victorias Secret vs. Ross Stores | Victorias Secret vs. Childrens Place | Victorias Secret vs. Buckle Inc | Victorias Secret vs. Guess Inc |
| Nok Airlines vs. easyJet plc | Nok Airlines vs. Norse Atlantic ASA | Nok Airlines vs. Air New Zealand | Nok Airlines vs. China Southern 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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