Correlation Between INTEL CDR and NIKE
Can any of the company-specific risk be diversified away by investing in both INTEL CDR 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 INTEL CDR and NIKE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INTEL CDR and NIKE Inc CDR, you can compare the effects of market volatilities on INTEL CDR 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 INTEL CDR with a short position of NIKE. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTEL CDR and NIKE.
Diversification Opportunities for INTEL CDR and NIKE
Very good diversification
The 3 months correlation between INTEL and NIKE is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding INTEL CDR 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 INTEL CDR 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 INTEL CDR 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 INTEL CDR i.e., INTEL CDR and NIKE go up and down completely randomly.
Pair Corralation between INTEL CDR and NIKE
Assuming the 90 days trading horizon INTEL CDR is expected to generate 2.1 times more return on investment than NIKE. However, INTEL CDR is 2.1 times more volatile than NIKE Inc CDR. It trades about 0.09 of its potential returns per unit of risk. NIKE Inc CDR is currently generating about 0.1 per unit of risk. If you would invest 1,313 in INTEL CDR on August 31, 2024 and sell it today you would earn a total of 79.00 from holding INTEL CDR or generate 6.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
INTEL CDR vs. NIKE Inc CDR
Performance |
| Timeline |
| INTEL CDR |
| NIKE Inc CDR |
INTEL CDR and NIKE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTEL CDR and NIKE
The main advantage of trading using opposite INTEL CDR and NIKE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTEL CDR 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.| INTEL CDR vs. Intact Financial Corp | INTEL CDR vs. iA Financial | INTEL CDR vs. Definity Financial Corp | INTEL CDR vs. Cogeco Communications |
| NIKE vs. Metalero Mining Corp | NIKE vs. High Liner Foods | NIKE vs. Capstone Mining Corp | NIKE vs. Gfl Environmental Holdings |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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