Correlation Between 2028 Investment and NIKE
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By analyzing existing cross correlation between 2028 Investment Grade and NIKE Inc CDR, you can compare the effects of market volatilities on 2028 Investment 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 2028 Investment with a short position of NIKE. Check out your portfolio center. Please also check ongoing floating volatility patterns of 2028 Investment and NIKE.
Diversification Opportunities for 2028 Investment and NIKE
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 2028 and NIKE is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding 2028 Investment Grade and NIKE Inc CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NIKE Inc CDR and 2028 Investment 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 2028 Investment Grade 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 CDR has no effect on the direction of 2028 Investment i.e., 2028 Investment and NIKE go up and down completely randomly.
Pair Corralation between 2028 Investment and NIKE
Assuming the 90 days trading horizon 2028 Investment is expected to generate 4.35 times less return on investment than NIKE. But when comparing it to its historical volatility, 2028 Investment Grade is 2.34 times less risky than NIKE. It trades about 0.07 of its potential returns per unit of risk. NIKE Inc CDR is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,370 in NIKE Inc CDR on November 3, 2024 and sell it today you would earn a total of 53.00 from holding NIKE Inc CDR or generate 3.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
2028 Investment Grade vs. NIKE Inc CDR
Performance |
| Timeline |
| 2028 Investment Grade |
| NIKE Inc CDR |
2028 Investment and NIKE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 2028 Investment and NIKE
The main advantage of trading using opposite 2028 Investment and NIKE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 2028 Investment 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.| 2028 Investment vs. Bausch Health Companies | 2028 Investment vs. Medical Facilities | 2028 Investment vs. Maple Peak Investments | 2028 Investment vs. Canaf Investments |
| NIKE vs. Globex Mining Enterprises | NIKE vs. Leading Edge Materials | NIKE vs. Cogeco Communications | NIKE vs. Doman Building Materials |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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