Correlation Between Nokia Corp and Gaxosai

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

By analyzing existing cross correlation between Nokia Corp ADR and Gaxosai, you can compare the effects of market volatilities on Nokia Corp and Gaxosai 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 Nokia Corp with a short position of Gaxosai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nokia Corp and Gaxosai.

Diversification Opportunities for Nokia Corp and Gaxosai

0.56

Correlation Coefficient

Nokia Corp  Gaxosai

Very weak diversification

The 3 months correlation between Nokia and Gaxosai is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Nokia Corp ADR and Gaxosai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaxosai and Nokia Corp 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 Nokia Corp ADR are associated (or correlated) with Gaxosai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gaxosai has no effect on the direction of Nokia Corp i.e., Nokia Corp and Gaxosai go up and down completely randomly.

Pair Corralation between Nokia Corp and Gaxosai

Considering the 90-day investment horizon Nokia Corp ADR is expected to under-perform the Gaxosai. But the stock apears to be less risky and, when comparing its historical volatility, Nokia Corp ADR is 2.76 times less risky than Gaxosai. The stock trades about -0.2 of its potential returns per unit of risk. The Gaxosai is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  112.00  in Gaxosai on May 6, 2025 and sell it today you would earn a total of  5.00  from holding Gaxosai or generate 4.46% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Nokia Corp ADR  vs.  Gaxosai

Nokia Corp ADR

Risk-Adjusted Performance

Very Weak

Over the last 90 days Nokia Corp ADR has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in September 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Gaxosai

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Gaxosai are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly conflicting basic indicators, Gaxosai may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Nokia Corp and Gaxosai

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

The idea behind Nokia Corp ADR and Gaxosai 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.