Correlation Between Nok Airlines and Maison Solutions

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

By analyzing existing cross correlation between Nok Airlines Public and Maison Solutions, you can compare the effects of market volatilities on Nok Airlines and Maison Solutions 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 Maison Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nok Airlines and Maison Solutions.

Diversification Opportunities for Nok Airlines and Maison Solutions

0.0

Correlation Coefficient

Nok Airlines  Maison Solutions

Pay attention - limited upside

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

Pair Corralation between Nok Airlines and Maison Solutions

If you would invest  107.00  in Maison Solutions on December 19, 2024 and sell it today you would earn a total of  4.00  from holding Maison Solutions or generate 3.74% return on investment over 90 days.

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

Nok Airlines Public  vs.  Maison Solutions

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 current stock price disturbance, may contribute to mid-run losses for the stockholders.

Maison Solutions

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Maison Solutions are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Maison Solutions unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Nok Airlines and Maison Solutions

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

The idea behind Nok Airlines Public and Maison Solutions 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.