Correlation Between EVS Broadcast and Nike
Can any of the company-specific risk be diversified away by investing in both EVS Broadcast and Nike 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 EVS Broadcast and Nike into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EVS Broadcast Equipment and Nike Inc, you can compare the effects of market volatilities on EVS Broadcast and Nike 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 EVS Broadcast with a short position of Nike. Check out your portfolio center. Please also check ongoing floating volatility patterns of EVS Broadcast and Nike.
Diversification Opportunities for EVS Broadcast and Nike
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between EVS and Nike is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding EVS Broadcast Equipment and Nike Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nike Inc and EVS Broadcast 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 EVS Broadcast Equipment are associated (or correlated) with Nike. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nike Inc has no effect on the direction of EVS Broadcast i.e., EVS Broadcast and Nike go up and down completely randomly.
Pair Corralation between EVS Broadcast and Nike
Assuming the 90 days trading horizon EVS Broadcast Equipment is expected to generate 1.19 times more return on investment than Nike. However, EVS Broadcast is 1.19 times more volatile than Nike Inc. It trades about 0.25 of its potential returns per unit of risk. Nike Inc is currently generating about -0.42 per unit of risk. If you would invest 2,950 in EVS Broadcast Equipment on October 11, 2024 and sell it today you would earn a total of 150.00 from holding EVS Broadcast Equipment or generate 5.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
EVS Broadcast Equipment vs. Nike Inc
Performance |
| Timeline |
| EVS Broadcast Equipment |
| Nike Inc |
EVS Broadcast and Nike Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EVS Broadcast and Nike
The main advantage of trading using opposite EVS Broadcast and Nike positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EVS Broadcast position performs unexpectedly, Nike 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 Nike will offset losses from the drop in Nike's long position.| EVS Broadcast vs. OBSERVE MEDICAL ASA | EVS Broadcast vs. Advanced Medical Solutions | EVS Broadcast vs. MeVis Medical Solutions | EVS Broadcast vs. PKSHA TECHNOLOGY INC |
| Nike vs. BROADWIND ENRGY | Nike vs. Salesforce | Nike vs. EVS Broadcast Equipment | Nike vs. CODERE ONLINE LUX |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |