Correlation Between Alta Equipment and Nok Airlines
Can any of the company-specific risk be diversified away by investing in both Alta Equipment and Nok Airlines 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 Alta Equipment and Nok Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alta Equipment Group and Nok Airlines Public, you can compare the effects of market volatilities on Alta Equipment and Nok Airlines 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 Alta Equipment with a short position of Nok Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alta Equipment and Nok Airlines.
Diversification Opportunities for Alta Equipment and Nok Airlines
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Alta and Nok is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Alta Equipment Group and Nok Airlines Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nok Airlines Public and Alta Equipment 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 Alta Equipment Group are associated (or correlated) with Nok Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nok Airlines Public has no effect on the direction of Alta Equipment i.e., Alta Equipment and Nok Airlines go up and down completely randomly.
Pair Corralation between Alta Equipment and Nok Airlines
If you would invest 640.00 in Alta Equipment Group on September 2, 2024 and sell it today you would earn a total of 151.00 from holding Alta Equipment Group or generate 23.59% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Alta Equipment Group vs. Nok Airlines Public
Performance |
Timeline |
Alta Equipment Group |
Nok Airlines Public |
Alta Equipment and Nok Airlines Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Alta Equipment and Nok Airlines
The main advantage of trading using opposite Alta Equipment and Nok Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alta Equipment position performs unexpectedly, Nok Airlines 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 Nok Airlines will offset losses from the drop in Nok Airlines' long position.Alta Equipment vs. PROG Holdings | Alta Equipment vs. GATX Corporation | Alta Equipment vs. McGrath RentCorp | Alta Equipment vs. Custom Truck One |
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Check out your portfolio center.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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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