Correlation Between Nok Airlines and GFL ENVIRONM
Can any of the company-specific risk be diversified away by investing in both Nok Airlines and GFL ENVIRONM 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 Nok Airlines and GFL ENVIRONM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nok Airlines PCL and GFL ENVIRONM, you can compare the effects of market volatilities on Nok Airlines and GFL ENVIRONM 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 Nok Airlines with a short position of GFL ENVIRONM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nok Airlines and GFL ENVIRONM.
Diversification Opportunities for Nok Airlines and GFL ENVIRONM
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nok and GFL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nok Airlines PCL and GFL ENVIRONM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GFL ENVIRONM and Nok 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 Nok Airlines PCL are associated (or correlated) with GFL ENVIRONM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GFL ENVIRONM has no effect on the direction of Nok Airlines i.e., Nok Airlines and GFL ENVIRONM go up and down completely randomly.
Pair Corralation between Nok Airlines and GFL ENVIRONM
If you would invest 2.50 in Nok Airlines PCL on September 26, 2024 and sell it today you would earn a total of 0.00 from holding Nok Airlines PCL or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Nok Airlines PCL vs. GFL ENVIRONM
Performance |
Timeline |
Nok Airlines PCL |
GFL ENVIRONM |
Nok Airlines and GFL ENVIRONM Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Nok Airlines and GFL ENVIRONM
The main advantage of trading using opposite Nok Airlines and GFL ENVIRONM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nok Airlines position performs unexpectedly, GFL ENVIRONM 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 GFL ENVIRONM will offset losses from the drop in GFL ENVIRONM's long position.Nok Airlines vs. Apple Inc | Nok Airlines vs. Apple Inc | Nok Airlines vs. Apple Inc | Nok Airlines vs. Apple Inc |
GFL ENVIRONM vs. Waste Management | GFL ENVIRONM vs. Republic Services | GFL ENVIRONM vs. Waste Connections | GFL ENVIRONM vs. Veolia Environnement SA |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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