Correlation Between Glorywin Entertainment and Nok Airlines

Can any of the company-specific risk be diversified away by investing in both Glorywin Entertainment 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 Glorywin Entertainment and Nok Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Glorywin Entertainment Group and Nok Airlines Public, you can compare the effects of market volatilities on Glorywin Entertainment 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 Glorywin Entertainment with a short position of Nok Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glorywin Entertainment and Nok Airlines.

Diversification Opportunities for Glorywin Entertainment and Nok Airlines

1.0

Correlation Coefficient

Glorywin Entertainment  Nok Airlines

No risk reduction

The 3 months correlation between Glorywin and Nok is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Glorywin Entertainment Group 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 Glorywin Entertainment 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 Glorywin Entertainment Group 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 Glorywin Entertainment i.e., Glorywin Entertainment and Nok Airlines go up and down completely randomly.

Pair Corralation between Glorywin Entertainment and Nok Airlines

If you would invest  9.50  in Nok Airlines Public on December 20, 2024 and sell it today you would earn a total of  0.00  from holding Nok Airlines Public or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Glorywin Entertainment Group  vs.  Nok Airlines Public

Glorywin Entertainment

Risk-Adjusted Performance

Very Weak

Over the last 90 days Glorywin Entertainment Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy forward indicators, Glorywin Entertainment is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Nok Airlines Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days Nok Airlines Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Nok Airlines is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Glorywin Entertainment and Nok Airlines

The main advantage of trading using opposite Glorywin Entertainment and Nok Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glorywin Entertainment 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.

The idea behind Glorywin Entertainment Group and Nok Airlines Public 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.

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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.