Correlation Between New Oriental and Nok Airlines
Can any of the company-specific risk be diversified away by investing in both New Oriental 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 New Oriental and Nok Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New Oriental Education and Nok Airlines Public, you can compare the effects of market volatilities on New Oriental 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 New Oriental with a short position of Nok Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Oriental and Nok Airlines.
Diversification Opportunities for New Oriental and Nok Airlines
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between New and Nok is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding New Oriental Education 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 New Oriental 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 New Oriental Education 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 New Oriental i.e., New Oriental and Nok Airlines go up and down completely randomly.
Pair Corralation between New Oriental and Nok Airlines
Considering the 90-day investment horizon New Oriental is expected to generate 376.93 times less return on investment than Nok Airlines. But when comparing it to its historical volatility, New Oriental Education is 51.92 times less risky than Nok Airlines. It trades about 0.02 of its potential returns per unit of risk. Nok Airlines Public is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 0.61 in Nok Airlines Public on September 12, 2025 and sell it today you would earn a total of 0.09 from holding Nok Airlines Public or generate 14.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
New Oriental Education vs. Nok Airlines Public
Performance |
| Timeline |
| New Oriental Education |
| Nok Airlines Public |
New Oriental and Nok Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Oriental and Nok Airlines
The main advantage of trading using opposite New Oriental and Nok Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Oriental 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.| New Oriental vs. Stride Inc | New Oriental vs. Grand Canyon Education | New Oriental vs. Smithfield Foods, Common | New Oriental vs. TAL Education Group |
| Nok Airlines vs. Cebu Air ADR | Nok Airlines vs. Harbor Diversified | Nok Airlines vs. YTO Express Holdings | Nok Airlines vs. Global Crossing Airlines |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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