Correlation Between Alstria Office and Nike
Can any of the company-specific risk be diversified away by investing in both Alstria Office 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 Alstria Office and Nike into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between alstria office REIT AG and Nike Inc, you can compare the effects of market volatilities on Alstria Office 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 Alstria Office with a short position of Nike. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alstria Office and Nike.
Diversification Opportunities for Alstria Office and Nike
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Alstria and Nike is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding alstria office REIT AG and Nike Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nike Inc and Alstria Office 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 alstria office REIT AG 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 Alstria Office i.e., Alstria Office and Nike go up and down completely randomly.
Pair Corralation between Alstria Office and Nike
Assuming the 90 days horizon alstria office REIT AG is expected to under-perform the Nike. In addition to that, Alstria Office is 5.27 times more volatile than Nike Inc. It trades about -0.26 of its total potential returns per unit of risk. Nike Inc is currently generating about -0.32 per unit of volatility. If you would invest 7,381 in Nike Inc on October 17, 2024 and sell it today you would lose (531.00) from holding Nike Inc or give up 7.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
alstria office REIT AG vs. Nike Inc
Performance |
| Timeline |
| alstria office REIT |
| Nike Inc |
Alstria Office and Nike Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alstria Office and Nike
The main advantage of trading using opposite Alstria Office and Nike positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alstria Office 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.| Alstria Office vs. Commonwealth Bank of | Alstria Office vs. CITIC Telecom International | Alstria Office vs. PNC Financial Services | Alstria Office vs. Erste Group Bank |
| Nike vs. PACIFIC ONLINE | Nike vs. ITALIAN WINE BRANDS | Nike vs. TRI CHEMICAL LABORATINC | Nike vs. ZhongAn Online P |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |