Correlation Between Nok Airlines and HYBRIGENICS

Can any of the company-specific risk be diversified away by investing in both Nok Airlines and HYBRIGENICS 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 HYBRIGENICS 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 HYBRIGENICS A , you can compare the effects of market volatilities on Nok Airlines and HYBRIGENICS 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 HYBRIGENICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nok Airlines and HYBRIGENICS.

Diversification Opportunities for Nok Airlines and HYBRIGENICS

0.0

Correlation Coefficient

Nok Airlines  HYBRIGENICS

Pay attention - limited upside

The 3 months correlation between Nok and HYBRIGENICS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nok Airlines PCL and HYBRIGENICS A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HYBRIGENICS A 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 HYBRIGENICS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HYBRIGENICS A has no effect on the direction of Nok Airlines i.e., Nok Airlines and HYBRIGENICS go up and down completely randomly.

Pair Corralation between Nok Airlines and HYBRIGENICS

If you would invest  0.65  in HYBRIGENICS A on December 23, 2024 and sell it today you would lose (0.05) from holding HYBRIGENICS A or give up 7.69% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

Nok Airlines PCL  vs.  HYBRIGENICS A

Nok Airlines PCL

Risk-Adjusted Performance

Very Weak

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 current stock price uproar, may contribute to short-horizon losses for the private investors.

HYBRIGENICS A

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in HYBRIGENICS A are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile fundamental drivers, HYBRIGENICS exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Nok Airlines and HYBRIGENICS

The main advantage of trading using opposite Nok Airlines and HYBRIGENICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nok Airlines position performs unexpectedly, HYBRIGENICS 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 HYBRIGENICS will offset losses from the drop in HYBRIGENICS's long position.

The idea behind Nok Airlines PCL and HYBRIGENICS A 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.