Correlation Between Nok Airlines and OCBCSP

Can any of the company-specific risk be diversified away by investing in both Nok Airlines and OCBCSP 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 OCBCSP 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 OCBCSP 1832 10 SEP 30, you can compare the effects of market volatilities on Nok Airlines and OCBCSP 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 OCBCSP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nok Airlines and OCBCSP.

Diversification Opportunities for Nok Airlines and OCBCSP

0.0

Correlation Coefficient

Nok Airlines  OCBCSP

Pay attention - limited upside

The 3 months correlation between Nok and OCBCSP is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nok Airlines Public and OCBCSP 1832 10 SEP 30 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OCBCSP 1832 10 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 OCBCSP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OCBCSP 1832 10 has no effect on the direction of Nok Airlines i.e., Nok Airlines and OCBCSP go up and down completely randomly.

Pair Corralation between Nok Airlines and OCBCSP

If you would invest  9,428  in OCBCSP 1832 10 SEP 30 on October 9, 2024 and sell it today you would earn a total of  334.00  from holding OCBCSP 1832 10 SEP 30 or generate 3.54% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	22.67%
Values	Daily Returns

Nok Airlines Public  vs.  OCBCSP 1832 10 SEP 30

Nok Airlines Public

Risk-Adjusted Performance

0 of 100

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

OCBCSP 1832 10

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in OCBCSP 1832 10 SEP 30 are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, OCBCSP is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Nok Airlines and OCBCSP

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

The idea behind Nok Airlines Public and OCBCSP 1832 10 SEP 30 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.