Correlation Between Nok Airlines and UNICREDIT SPA
Can any of the company-specific risk be diversified away by investing in both Nok Airlines and UNICREDIT SPA 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 UNICREDIT SPA 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 UNICREDIT SPA ADR, you can compare the effects of market volatilities on Nok Airlines and UNICREDIT SPA 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 UNICREDIT SPA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nok Airlines and UNICREDIT SPA.
Diversification Opportunities for Nok Airlines and UNICREDIT SPA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nok and UNICREDIT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nok Airlines PCL and UNICREDIT SPA ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNICREDIT SPA ADR 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 UNICREDIT SPA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNICREDIT SPA ADR has no effect on the direction of Nok Airlines i.e., Nok Airlines and UNICREDIT SPA go up and down completely randomly.
Pair Corralation between Nok Airlines and UNICREDIT SPA
If you would invest 991.00 in UNICREDIT SPA ADR on April 20, 2025 and sell it today you would earn a total of 1,889 from holding UNICREDIT SPA ADR or generate 190.62% 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. UNICREDIT SPA ADR
Performance |
Timeline |
Nok Airlines PCL |
UNICREDIT SPA ADR |
Nok Airlines and UNICREDIT SPA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Nok Airlines and UNICREDIT SPA
The main advantage of trading using opposite Nok Airlines and UNICREDIT SPA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nok Airlines position performs unexpectedly, UNICREDIT SPA 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 UNICREDIT SPA will offset losses from the drop in UNICREDIT SPA's long position.Nok Airlines vs. BOSTON BEER A | Nok Airlines vs. Hyster Yale Materials Handling | Nok Airlines vs. Molson Coors Beverage | Nok Airlines vs. Compagnie Plastic Omnium |
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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