Correlation Between Nok Airlines and Comba Telecom

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

Diversification Opportunities for Nok Airlines and Comba Telecom

0.0

Correlation Coefficient

Nok Airlines  Comba Telecom

Pay attention - limited upside

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

Pair Corralation between Nok Airlines and Comba Telecom

If you would invest  14.00  in Comba Telecom Systems on October 26, 2024 and sell it today you would lose (2.00) from holding Comba Telecom Systems or give up 14.29% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Nok Airlines PCL  vs.  Comba Telecom Systems

Nok Airlines PCL

Risk-Adjusted Performance

0 of 100

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.

Comba Telecom Systems

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Comba Telecom Systems has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Comba Telecom is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Nok Airlines and Comba Telecom

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

The idea behind Nok Airlines PCL and Comba Telecom Systems 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.