Correlation Between JV SPAC and Nike
Can any of the company-specific risk be diversified away by investing in both JV SPAC 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 JV SPAC and Nike into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JV SPAC Acquisition and Nike Inc, you can compare the effects of market volatilities on JV SPAC 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 JV SPAC with a short position of Nike. Check out your portfolio center. Please also check ongoing floating volatility patterns of JV SPAC and Nike.
Diversification Opportunities for JV SPAC and Nike
Very good diversification
The 3 months correlation between JVSA and Nike is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding JV SPAC Acquisition and Nike Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nike Inc and JV SPAC 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 JV SPAC Acquisition 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 JV SPAC i.e., JV SPAC and Nike go up and down completely randomly.
Pair Corralation between JV SPAC and Nike
Given the investment horizon of 90 days JV SPAC Acquisition is expected to generate 0.1 times more return on investment than Nike. However, JV SPAC Acquisition is 10.12 times less risky than Nike. It trades about 0.1 of its potential returns per unit of risk. Nike Inc is currently generating about -0.03 per unit of risk. If you would invest 1,003 in JV SPAC Acquisition on September 12, 2024 and sell it today you would earn a total of 37.00 from holding JV SPAC Acquisition or generate 3.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 54.26% |
| Values | Daily Returns |
JV SPAC Acquisition vs. Nike Inc
Performance |
| Timeline |
| JV SPAC Acquisition |
| Nike Inc |
JV SPAC and Nike Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JV SPAC and Nike
The main advantage of trading using opposite JV SPAC and Nike positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JV SPAC 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.| JV SPAC vs. Nike Inc | JV SPAC vs. Ark Restaurants Corp | JV SPAC vs. First Watch Restaurant | JV SPAC vs. Canada Goose 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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