Correlation Between Nokia Corp and SatixFy Communications

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

Diversification Opportunities for Nokia Corp and SatixFy Communications

-0.53

Correlation Coefficient

Nokia Corp  SatixFy Communications

Excellent diversification

The 3 months correlation between Nokia and SatixFy is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Nokia Corp ADR and SatixFy Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SatixFy Communications 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 SatixFy Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SatixFy Communications has no effect on the direction of Nokia Corp i.e., Nokia Corp and SatixFy Communications go up and down completely randomly.

Pair Corralation between Nokia Corp and SatixFy Communications

Considering the 90-day investment horizon Nokia Corp ADR is expected to under-perform the SatixFy Communications. But the stock apears to be less risky and, when comparing its historical volatility, Nokia Corp ADR is 4.74 times less risky than SatixFy Communications. The stock trades about -0.22 of its potential returns per unit of risk. The SatixFy Communications is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  203.00  in SatixFy Communications on May 6, 2025 and sell it today you would earn a total of  93.00  from holding SatixFy Communications or generate 45.81% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	64.52%
Values	Daily Returns

Nokia Corp ADR  vs.  SatixFy Communications

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.

SatixFy Communications

Risk-Adjusted Performance

Good

Over the last 90 days SatixFy Communications has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly uncertain basic indicators, SatixFy Communications showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Nokia Corp and SatixFy Communications

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

The idea behind Nokia Corp ADR and SatixFy Communications 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.

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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.