Correlation Between Nok Airlines and UNICREDIT SPA

Specify exactly 2 symbols:
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 Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Nok Airlines PCL  vs.  UNICREDIT SPA ADR

 Performance 
       Timeline  
Nok Airlines PCL 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Nok Airlines PCL has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Nok Airlines is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.
UNICREDIT SPA ADR 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in UNICREDIT SPA ADR are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain forward indicators, UNICREDIT SPA reported solid returns over the last few months and may actually be approaching a breakup point.

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.
The idea behind Nok Airlines PCL and UNICREDIT SPA ADR pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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.

Other Complementary Tools

Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Money Managers
Screen money managers from public funds and ETFs managed around the world
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Analyst Advice
Analyst recommendations and target price estimates broken down by several categories