Correlation Between Nok Airlines and Waters

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

Diversification Opportunities for Nok Airlines and Waters

0.0

Correlation Coefficient

Nok Airlines  Waters

Pay attention - limited upside

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

Pair Corralation between Nok Airlines and Waters

If you would invest  9.50  in Nok Airlines Public on October 8, 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	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Nok Airlines Public  vs.  Waters

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

Waters

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Waters are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Waters may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Nok Airlines and Waters

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

The idea behind Nok Airlines Public and Waters 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.