Correlation Between Armada Hflr and Nike
Can any of the company-specific risk be diversified away by investing in both Armada Hflr 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 Armada Hflr and Nike into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Armada Hflr Pr and Nike Inc, you can compare the effects of market volatilities on Armada Hflr 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 Armada Hflr with a short position of Nike. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Nike.
Diversification Opportunities for Armada Hflr and Nike
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Armada and Nike is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr and Nike Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nike Inc and Armada Hflr 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 Armada Hflr Pr 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 Armada Hflr i.e., Armada Hflr and Nike go up and down completely randomly.
Pair Corralation between Armada Hflr and Nike
Considering the 90-day investment horizon Armada Hflr Pr is expected to generate 0.9 times more return on investment than Nike. However, Armada Hflr Pr is 1.11 times less risky than Nike. It trades about 0.01 of its potential returns per unit of risk. Nike Inc is currently generating about -0.04 per unit of risk. If you would invest 1,095 in Armada Hflr Pr on September 19, 2024 and sell it today you would earn a total of 4.00 from holding Armada Hflr Pr or generate 0.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.34% |
| Values | Daily Returns |
Armada Hflr Pr vs. Nike Inc
Performance |
| Timeline |
| Armada Hflr Pr |
| Nike Inc |
Armada Hflr and Nike Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and Nike
The main advantage of trading using opposite Armada Hflr and Nike positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr 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.| Armada Hflr vs. Modiv Inc | Armada Hflr vs. Precinct Properties New | Armada Hflr vs. Global Net Lease | Armada Hflr vs. NexPoint Diversified Real |
| Nike vs. Deckers Outdoor | Nike vs. Superior Plus Corp | Nike vs. NMI Holdings | Nike vs. SIVERS SEMICONDUCTORS AB |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |